The battle took place after the NRM's armed wing, the National Resistance Army (NRA), had successfully raided Kabamba and carried off important military supplies.

The Ugandan government sent a strong force of Uganda National Liberation Army (UNLA) soldiers to pursue and destroy the NRA raiders.

Alongside other unsuccessful clashes, the Battle of Birembo undermined the morale of UNLA, contributing to the 1985 Ugandan coup d'état and the NRM/NRA's takeover in Uganda in 1986.

[5][6] In February 1981 Museveni and a small band of rebels began attacking UNLA forces, entering the Ugandan Bush War.

Knowing that his force was far smaller and not well equipped, Museveni envisioned that the NRA would wage a long-term "people's war" to gradually undermine Obote's government and build up support across Uganda, starting with the Luwero region where many civilians were already sympathetic to his cause.

[10] Unlike the previous attacks, the Third Battle of Kabamba on 1 January 1985 resulted in the capture of the depot by the NRA's Mobile Brigade under Salim Saleh.

The Mobile Brigade eventually stopped and rested for two days at the River Nguse, waiting for the arrival of another NRA column which had been personally commanded by Museveni.

[1] Meanwhile, UNLA high command had decided that it had to react to the plundering of Kabamba, with Brigadier Smith Opon Acak reportedly being "furious" at the defeat.

[12] The pursuing force mainly consisted of the UNLA's Special Brigade, formed by well-trained veterans of the northern frontline of the Bush War,[13] and was equipped with anti-aircraft guns, Katyusha rocket launchers, and 120mm mortars.

In addition, the contingent was supported by North Korean soldiers who manned some of the artillery pieces including the Katyusha rocket launchers.

The insurgents sent smaller units led by Patrick Lumumba Ruyondo and Geoffrey Taban to monitor the UNLA force's movements and divert them to another area.

By the time Salim Saleh and the other officers became aware that Ogole's contingent was actually trying to encircle them at Birembo, many NRA fighters including Museveni himself were gathering food from the area's peasants.

[13] Museveni would also argue that the battle had been decisive, as it had showcased to UNLA soldiers that the NRA's ability to fight was increasing, not declining, contributing to a deterioration of morale among government forces.

The rebels opened a second front in the Rwenzori Mountains, using the opportunity to also relocate wounded fighters as well as supportive civilians to less dangerous areas.

[12][21] When the NRA inflicted another defeat on a major UNLA force in the Battle of Kembogo of June 1985, the government soldiers became increasingly frustrated at the Bush War's course and Obote's leadership.

The new regime was weak and unstable, and Okello made overtures to anti-Obote rebel groups to form a coalition government and end the fighting.

[25][26] In August 1985, the NRA launched a series of co-ordinated attacks that resulted in the capture of significant amounts of territory in central and western Uganda.