In the current territory conditions of urbanization, development, and intense urbanization, a series of problems arise related to implementing and realizing effective policies amid constant internal and external changes. This necessitates the identification of problems in the economic development of urbanized territories in Ukraine. The issue was exacerbated by the Russo- Ukrainian War, which posed direct risks and threats to the country's national security. Through the analysis of the current state of economic development in urbanized territories, it identified that the following problems hinder economic development: disparities in the development of urbanized environments, a low level of cooperation between regions, outdated approaches to urban planning leading to urban sprawl and chaotic construction, unbalanced housing policies, and urban infrastructure that does not meet modern requirements. The military; aggression from the Russian Federation has led to the decline of economic development in urbanized territories, resulting in a high level of external and internal migration, increased unemployment, and overall deterioration of the country's economic growth. Effective development programs at national and regional levels address urbanized territory development problems. These programs should focus on reconstructing territories, infrastructure, and industry, creating a comfortable and safe environment, providing new job opportunities, reducing unemployment, and promoting overall economic growth.