A Ugandan court on Monday ordered the government to pay victims of a former Lord's Resistance Army commander up to $2,500 each.
Thomas Kwoyelo was found guilty in August of multiple counts of crimes against humanity for his role in the notorious militia in the first such trial in the East African country.
He was sentenced to 40 years in prison in October.
On Monday, the court in Gulu in northern Uganda found that he was unable to provide compensation to victims and their families and found the government liable in his place.
"The atrocities committed by Thomas Kwoyelo against his victims was a manifestation of the failure on the part of government that triggers a responsibility on the state to pay reparations to the victims," the panel of four judges said.
The LRA was founded by former altar boy and self-styled prophet Joseph Kony in Uganda in the 1980s.
Its rebellion against President Yoweri Museveni saw more than 100,000 people killed and 60,000 children abducted in a reign of terror that spread to several neighbouring countries.
The judges on Monday ruled that each of 103 registered victims of Kwoyelo would be paid four million shillings (about $1,100) with an additional five million shillings ($1,360) for victims of rape and sexual violence.
The government's representatives in the court pushed back on the ruling, saying it contained no legal basis to hold the state responsible.
They suggested the money could instead come from a trust fund for victims at the International Criminal Court.
One of the lawyers for the victims, Henry Komakech Kilama, cautiously welcomed the outcome.
"We are grateful to the court for recognising the suffering the victims have faced under the cruel hand of Kwoyelo," he told AFP.
"We would have expected more than what court awarded the victims but we believe it is a victory against impunity," he added.
Kwoyelo's crimes included murder, torture, rape and kidnapping. He has already served 15 years in prison after being captured in 2009.