The article deals with the conditions of adaptation of the economic environment in territorial communities in wartime. It is determined that the destructive processes observed in the economic system of Ukraine under the influence of military aggression lead to a reduction in the financial capabilities of territorial communities, and also entail uncertainty in the formation of an effective economic environment, entrepreneurial risks, and a general decrease in the economic activity of business entities. All this leads to a decrease in the level of competitiveness of territorial communities.

The study identifies mechanisms for ensuring the functioning of relocated businesses within territorial communities and their interaction with local enterprises. Prospects for stabilizing the economic environment in territorial communities and further cooperation with investors are outlined. It is determined that the economic environment of territorial communities is determined by various factors, including economic activity, infrastructure, employment, access to resources and services, tax policy, and other aspects. It is important to bear in mind that each territorial community is unique, and the development of the economic environment is linked to the specifics and potential of a particular region. In addition, the impact of global and national economic trends can play an important role in shaping the economic environment at the level of territorial communities. It is emphasized that in a wartime economy, a working business provides income for its owners and employees, and most importantly, it provides revenues to the state budget and budgets of territorial communities at various levels.

The author identifies the specifics of the current stage of development of territorial communities in Ukraine, which implies the need to form a functional relationship between them and the regions in which these communities are located. At the same time, in modern conditions, territorial communities and regions face many challenges associated with a decline in living standards, rising unemployment, refusal to invest, and other factors that impair their competitiveness, etc.