The article is devoted to the analysis of administrative and legal preconditions of economic development of united territorial communities in the conditions of martial law. The measures already implemented on the organization of financial independence of local budgets are studied and the prospects of further implementation of the measures of the mentioned municipal reform in the conditions of martial law are considered. Based on the conducted scientific analysis of administrative and legal bases for economic development of united territorial communities in Ukraine, the authors express their own proposals aimed at strengthening their material and financial base in the face of the challenges of martial law. It is noted that Ukrainian communities, which have become more effective through decentralization reform, are showing resilience even in wartime. Their main goal today is to create conditions for the provision of quality public services at the level closest to the citizen. The concept of OTG capability in martial law, as the ability to accumulate and rationally use available financial, material, human and other resources, as well as identify and use their reserves to meet current needs, needs of internally displaced persons, territorial development and military logistics , formation of OTG competitiveness in the future. Creating preconditions for economic capacity of territorial communities involves optimizing the financial and economic base of local governments, optimizing intergovernmental relations, forming effective local budgets that can ensure the performance of local government functions. -territorial units are communal property, natural resources, land. The problems of relocation of business and internally displaced persons, as well as the impact of these factors on the development of united territorial communities are considered. Guarantees of material and financial capacity of local self-government bodies in the conditions of martial law are covered. Martial law involves the provision of public authorities, military command, necessary to deter the threat, repel armed aggression and ensure national security.