Due to high prime-age mortality—a result of HIV/AIDS, the number of orphans in Uganda continues to rise. Using the 2002/2003 Uganda National Household Survey, this paper investigates how HIV/AIDS orphan status affects schooling enrolment and grade progression. Our results show that HIV/AIDS orphans are not significantly less likely to continue schooling but are by far more likely to fall below their appropriate grade. Furthermore, we find that the schooling gaps decreases at higher levels of household welfare status—poor HIV/AIDS orphans, especially aged 13–17 years, are significantly less likely to continue schooling.