President Yoweri Museveni has ordered the country's security chiefs to enforce the ban on the use of polythene bags.
He further ordered 45 manufacturers to stop churning the products in line with a shelved law which had barred use of plastic bags.
With the directive, Uganda becomes the third African country to ban the use, sale, and manufacturing of plastic bags.
Kenya banned plastic bags in 2017 while Rwanda has had the order in force for years.
"My message to the plastics industry is that you should manufacture, distribute and sell only permitted quality plastics," Daily Monitor quotes Museveni.
"The continued manufacture of banned products must stop," the president said during celebrations to mark the World Environment Day.
He said since the 2010 law on use of sacks and bags of ethene and polyethene had not been repealed, it should be enforced.
A UN report released on Tuesday has proposed to governments to consider banning or imposing heavy taxes on manufacturers of single-use plastic bags.
The report recommended on grounds that "less than a 10th of all the plastic ever made has been recycled."
The comprehensive study says that up to 5 trillion plastic bags are used worldwide each year, according to Reuters.
"The scourge of plastic has reached every corner of the Earth," Erik Solheim, head of UN Environment, says in the report.
"Only 9 per cent of the 9 billion tonnes of plastic the world has ever produced has been recycled," the report said.
"Most ends up in landfills, dumps or in the environment."