Manufacturing businesses, particularly the manufacturing businesses in Eritrea, face challenges in terms of increasing productivity in which their products are competitive in the market. The contribution of the manufacturing businesses to the GDP of Eritrea is Low and thus affecting to the economy of the country. Therefore, to increase productivity, the manufacturing businesses in Eritrea need to ensure that their employees are performing as intended. In this case, suitable communication climate can play a role since it can support to have effective communication among employees in an organization that actually supports employees to achieve the required level of performance. It was therefore that the objective of this study was to determine whether communication climate influences employee performance in selected large manufacturing businesses in Eritrea. The target population for this study was employees of the selected large manufacturing businesses in Eritrea with a population size of 4175 employees. The sample size of this study was 365 employees, which was determined using Taro Yamane formula. They were selected from each selected large manufacturing businesses using proportionate random sampling technique. Data was then collected using questionnaire and analyzed using both the descriptive (percentage) and inferential statistical analysis (correlation, regression and ANOVA) methods. SPSS was used as a tool to conduct the descriptive and inferential statistical analysis. This study was a quantitative research study based on a quantitative data. The study considered communication climate as independent variable and employee performance as a dependent variable. The study findings indicate that there was a healthy communication climate in the selected large manufacturing businesses in Eritrea and thus there was a significant positive relationship between communication climate and employee performance. The study concluded that communication climate did have influence on employee performance in the selected large manufacturing businesses in Eritrea.