Along with the “smart city”, it is planned to implement the “smart village” project in post-conflict areas. In international practice, Smart Village means solving the main problems facing the rural population and, more importantly, creating new economic opportunities in rural areas. “Smart village” technologies are digitization, thinking beyond the boundaries of the village, a new format of cooperation between the village and adjacent regions. We can also block the possibility of a cycle of decline by applying smart village technologies in liberated areas. Also, the use of “smart village” technologies will create conditions for the widespread dissemination of social innovations, micro and small start-up businesses among the rural population of these territories. In conclusion, smart city and smart village, the application of technology can transform the Karabakh region into a tourism pearl created by the unity of artificial intelligence and the natural beauty of the world, and at the same time an innovative start. The aim of the article is analysis and characteristics of the state concept of "Smart city" and "Smart village" as a priority of the national economy of Azerbaijan. Methods used in the study: comparative analysis, gradient, detailing and generalization, rating and grouping, etc. The hypothesis of the study. One of the current areas of scientific research is the sphere of living environment, which from the field of Smart Homes is currently developing into the field of Smart City, Smart Transport System, etc. Presentation of the main material. Currently, there is a rapid change in information and communication technologies (ICT). The emerging changes affect network technologies, computing and communication devices themselves, as well as data processing. As a result, information technologies are used in more and more areas of human life and economic life. Today, cities have become a major force in economic development and are central to production, consumption networks, defining social and economic relationships, and now provide a significant share of the gross domestic product of many countries. Cities have come to play a major role in national, regional and global development. The quality of people's lives depends on them. Therefore, today, more than ever, they are subject to special requirements, such as the availability of accessible urban infrastructure, high mobility, safety of urban areas, environmental friendliness, and developed urban self-government. For example, there is a whole direction that studies the growth of urban settlements, population concentration, and socio-economic changes. This direction is called urbanization. In 2008, the urban population was equal to the rural population. According to UN forecasts, by 2050, 85% of the population will live in cities. Thus, governments and city authorities are faced with new tasks that must not only solve a whole range of emerging problems, but also carry out a radical transformation of cities. The important point is a detailed analysis, understanding of these problems, as well as the ability to consider various solution options. All of the listed problems as a result of active urbanization are the main triggers and forced processes of urban development and their transformation into “Smart Cities”. The originality and practical significance of the study. The main goal of Smart Village projects around the world is to prevent rural-to-urban migration. In other words, conditions must be created for residents of rural areas so that all the services that people can get in the city are easily accessible in villages. At the same time, it is necessary to create more income and employment opportunities for rural residents. The third point is the creation of full-fledged conditions to ensure access of rural residents to public services. In other words, in the Smart Village concept, the difference between rural and urban areas has practically disappeared in terms of service, profit generation, and use of public services. Conclusions. According to the Smart Village concept, process electronization expands production capabilities. “Smart Village” is an automated, centrally managed and jointly managed system of the entire platform, from irrigation to tillage, harvesting, and also involves the use of the most advanced technologies and technology transfer. Integration of this system into other areas of rural infrastructure – alternative energy sources and a modern transport system - will complete the Smart Village concept.