The article addresses the main problems related to the management of endogenous development potential of the Western region in Ukraine under martial law. It notes that the efficiency of using the endogenous potential is determined by such factors as natural resources, human and social capital, institutional environment, managerial competence, infrastructure development, technological innovations, and financial and budgetary capacity. The article shows how the introduction of martial law in Ukraine has affected the effectiveness of endogenous development potential management in the Western region of Ukraine. The focus is on new challenges for local authorities caused by institutional transformations and a significant number of internally displaced persons, as well as relocated enterprises from other regions of the country, including the war zone. The article emphasizes the risk of reduced local governments’ influence on the economic development of the Western region of Ukraine under martial law. It may lead to a decrease in the effectiveness of endogenous potential management of its individual areas. In addition, it will not meet EU institutional standards, negatively affecting the process of further European integration of Ukraine. At the same time, the main advantages of the regions of the Western part of Ukraine are emphasized in view of the intensification of cooperation with the EU. It especially concerns the changes in the institutional environment. Thus, the priority areas of expected institutional transformations include changing approaches to the administration of local taxes and fees, optimizing the mechanism of interaction between authorities at different levels, reforming the system of intergovernmental transfers, and implementing the principle of subsidiarity at all levels of government. These and related institutional innovations will help increase the effectiveness of management of endogenous development potential in the Western region of Ukraine, not only under martial law but also in the postwar period. The article contains the recommendations for public authorities and local governments to implement a number of management measures aimed at improving the efficiency of endogenous development potential in the Western region of Ukraine in current conditions. It substantiates the need to strengthen the administrative and financial capacity of local governments of the region, intensify and diversify cross-border cooperation, stimulate business development, improve the investment climate and modernize local infrastructure. 

endogenous potential, Western region of Ukraine, European integration, institutional environment, local self-government