In the conditions of the formation of Ukraine as a social legal state, processes of transformation of Ukrainian society naturally occur. The purpose of the article is to find ways to optimize the mechanism of interaction between civil society institutions and state authorities. After all, civil society and the state are interdependent in their development. The formation of civil society determines the democratization of the state, but it is the state that acts as an instrument of its own modification and ensuring the civilized functioning and development of civil society. in the conditions of transitive processes of Ukrainian society, constant socio-economic, political-administrative, cultural-ideological transformations in the state, it is possible to clearly trace the constant growth of activity and strengthening of the role of civil society institutions. At the same time, the rapid development of civil society, qualitative changes in the structure of which determine changes in the state administration system. Awareness of the interrelationship between civil society and the state is of great importance for deepening the understanding of modern trends in the development of state management mechanisms and justifying the need to modernize the system of state management in Ukraine. In this connection, there is an objective need to optimize the mechanism of interaction between state power and civil society through broad involvement of the latter's institutions in state management processes, which will make it possible for Ukraine to become a strong legal, social democratic state. After all, interaction between institutions of government and civil society is the key to the development of our state, strengthening of its economic potential and defense capability, in connection with which it is absolutely necessary to determine the factors that prevent this interaction and to determine ways to eliminate them. The article examines the category-conceptual apparatus regarding the interaction of the state and civil society. The most important directions of conflict reduction in power-society relations are analyzed. Directions for optimizing the interaction of state authorities with civil society institutions are proposed. The prospects for the development of civil society in Ukraine under the conditions of continuous influence of external and internal processes have been studied.