Considerable attention has been given to the identification of key forms of reward and its linkage to employee engagement. For this purpose following study aims to uncover the influence of extrinsic and intrinsic rewards on employee engagement in the public sector of Uganda. A sample of 184 public sector employees was randomly selected and taken from Gulu district. A quantitative approach based survey in form of closed ended Five Point Likert-Scale questionnaire was designed and used to implore responses from participants. 184 questionnaires was distributed, 180 were returned, processed and only 176 were found usable. Data collected were then analyzed both descriptively and inferentially using SPSS ver. 17. Findings showed that external reward has a positive significant influence on employee engagement. Additionally, the findings also indicated that intrinsic reward has a positive significant relationship with employee engagement. The study highlighted the importance of using both extrinsic and intrinsic rewards for employee engagement. Further implications and future research are discussed.