Construction while being an economic activity that provides facilities and infrastructure, it is beneficial to man in some aspects and detrimental in others. There have been environmental concerns related to construction activities globally which mainly focus on atmospheric emissions, depletion of natural resources and energy issues. This study was carried out to assess the impacts of construction activities on the environment in Iganga Municipality and to propose measures for their mitigation. The methodology included: review of relevant literature, observations of the general environmental effects of construction activities, focus groups and a survey conducted among construction industry role players to determine their perceptions and opinions regarding environmental impact of construction activities. The collected data was presented in tabular form and analysed by description of responses to questions. The study revealed that forests were the most greatly degraded due to high demand of timber for construction followed by wetlands degradation. The findings of this study will be useful to architects, designers and builders in order to carefully design buildings and other infrastructure that are environmentally friendly and sustainable. Construction materials and their mode of acquisition are harmful threats to the environment. There is need to reduce the consumption of these materials through recycling and reusing wastes to reduce on waste generation, use of virgin materials and the subsequent waste of energy used in new material production.