Given overwhelming global dominance of neoliberalism and capitalism today, Cuba is almost alone in providing an alternative socialist political, social, and economic path to development. This path has undergone huge changes over past four decades, and since breakup of Soviet bloc in early 1990s Cuban socialism has suffered greatly and has had to respond in unforeseen ways. Though changed fundamentally, Cuban Revolution has not only managed to survive, surprising critics and supporters alike, but in latter half of 1990s developed further, despite intensification of U.S. economic blockade of country. The political and economic transformation of Cuba and intensely hostile environment in which it has had to operate make it a fascinating subject for analysis. Twenty years ago Carmelo Mesa-Lago stated that the Cuban Revolution continues to polarise opinion, being a source of uncritical admiration, passionate criticism, and intriguing curiosity (1981: 1). This remains case today. This article adopts a political economy perspective, bringing together main ideological forces and changing political/institutional frameworks with key economic changes that have taken place during course of Revolution. Discussion is given to various stages of development of Cuban Revolution, with particular emphasis on recent economic reforms and their implications for future socialist development. A number of important issues are examined, including changing nature of Cuban socialism, implications of tying Cuba's economic development to Soviet bloc,