Abstract: The study was conducted in Bukoba Municipality and Muleba District Council in Kagera Region to explorer the association between youth involvement in economic activities and reduction in their social vulnerability. The study specifically focused on examining the levels at which youth were involved in economic activities and their determinants, assessed capital and income earned as well as the problems they face as the result of lack of employment. Study design was cross sectional survey into four randomly selected Mitaa and villages from two wards respectively. In each mtaa and village 19 households with youth were selected purposely to make a total of 152 youth for the study. Data from youth in the selected households were collected using pre-tested structured questionnaire. Statistical Package for Social Sciences (SPSS) was used to analyze the determinants of youth involvement in economic activities where the regression analysis was done to examine the effects of various factors on youth involvement in economic activities. The study found that, education and age of respondents were statistically significant at (p< 0.05) and (p< 0.001) respectively in youth involvement in economic activities. Also majority of unemployed youth are vulnerable to inability to meet basic necessities, the situation which increases the vicious cycle of poverty, HIV/AIDS infections and Social evils among the community. However, the study recommends that, youth vulnerability reduction strategies should be specifically addressing youth differentials in gender, age and education.