The article examines the strategic directions for developing family farms in Ukraine, particularly in the context of challenges arising from military conflict and European integration. These challenges present a unique opportunity for the recovery of the agricultural sector in the country. The study also investigates the institutional and economic issues impacting the formation and growth of family farms. The primary aim of the research is to provide a theoretical and methodological foundation for developing recommendations that stimulate the growth of family farms amid martial law and the ongoing process of European integration. To achieve this, the research employs statistical-economic and abstract-logical methods, along with graphical techniques for data analysis. A comprehensive approach to research methodology incorporates statistical-economic and monographic methods to identify the reasons behind the insufficient development of this sector. As the agrarian economy undergoes reconstruction, family farms are expected to adapt quickly to new conditions and play a pivotal role in implementing strategies for organic agriculture and the circular economy. The article outlines the necessary conditions for transforming personal peasant farms into family farms and notes their current number. It summarizes the practices of individual family farms while identifying the institutional and economic challenges hindering their development. The potential of public initiatives aimed at supporting and stimulating the growth of family farms during martial law, in light of European integration prospects, is analyzed. The article emphasizes the increasing importance of integration processes in the economic development of family farming. Furthermore, it clarifies the role of family farms in providing food for the population, creating employment opportunities for rural residents, producing labor-related goods, and mitigating the negative impacts of military actions. The research evaluates the organizational and economic support necessary for the functioning of family farms. It assesses both the advantages and shortcomings in the development of personal peasant farms and identifies the reasons for the limited growth of family farming. The findings of this study offer methodological approaches for establishing family farms based on personal peasant farms. The article presents a mechanism for implementation by identifying sustainable development pathways. The scientific novelty of this research lies in its comprehensive analysis of how martial law and European integration influence the development of family farms in Ukraine. The results have practical implications for family farms, rural communities, and investors, who can benefit from initiatives that stimulate family farm development and help shape strategic directions for state policy in the agrarian economy. Methodological approaches to creating family farms from personal peasant farms have been developed, aimed at enhancing their efficiency, improving the socio-economic well-being of peasants, and fostering rural development.