The article deals with the current state and prospects for developing decentralization in public administration by transferring managerial functions and central authorities’ powers to the local administration level. The article emphasizes that despite being tested by war, Ukrainian decentralization received an impeccable assessment from the European Commission, which preceded granting our country the candidate status for the European Union membership. The history of decentralization is analyzed, and successive stages are singled out. The stages mainly relate to the normative and legal regulation of this process: the first stage (2014– 2019), the second stage (2020–2021), and the third stage (2022 – present). The third stage of the local self-government reform seems to be the most difficult since it occurred during the martial law period. The hostilities only emphasized the effectiveness of the decentralization reform: local self-government bodies responded promptly to the situation, resolving issues of settling internally displaced persons, repairing housing for them, providing facilities and premises for evacuated enterprises, and organizing humanitarian headquarters. An essential task of the third stage is adopting the Law on Amendments to the Constitution of Ukraine (regarding decentralization of power), a prerequisite for continuing decentralization reforms and their completion. The article examines the achievements that are positively reflected in the activities of the united territorial communities due to the decentralization process in the following areas: budget, healthcare, security, international cooperation, culture, education, and service provision. At the same time, the factors complicating the decentralization process and leading to problems in the practical and proper functioning of local authorities are considered. Attention is drawn to the need to adopt important laws, including the Laws “On the principles of the administrative and territorial structure of Ukraine”, “On service in local selfgovernment bodies” (revised version), “On state supervision over the legality of decisions of local self-government bodies”, “On local referendum”, as well as updating laws on local selfgovernment, on local state administrations, etc.