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The development of particular towns is a factor that determines the economical, social and spatial development of the country. Therefore we turn our attention to it with a critical eye. On 20th October 2015 the government in Poland accepted a bill connected with the Country Town Policy 2023, that is addressed to towns. Its main point is to strengthen towns in their sustainable development, betterment of standards of living and workplace creation. The socio-economical transformation that occurred in Poland in 1989 has caused a lot of changes in the country. In Ukraine it happened in 1991 and it appears that due to various reasons, its transformation seems to be a much longer process and the process has not finished yet. This article focuses on the development of small towns in Ukraine and Poland, which, in currently difficult times, find themselves in a hard and unstable socio-economic situation. This article analyzes the economic, demographic and spatial aspects of small towns in Ukraine and Poland.