This paper explores Somalia's trajectory following its participation in the Heavily Indebted Poor Countries (HIPC) Initiative, scrutinizing the implications of debt relief and delineating a roadmap for sustainable economic resilience and growth in the post-HIPC era. By leveraging a comprehensive analysis of Somalia's experience within the HIPC framework, this study underscores the necessity of sustained reforms, fiscal prudence, and strategic investments to bolster long-term economic stability and advancement. The HIPC Initiative, heralded as a catalyst for debt reduction, has substantially alleviated Somalia's external debt burden, from $5.2 billion to $600 million, through stringent economic and governance reforms, emblematic of Somalia's commitment to fostering sustainable economic policies and poverty alleviation strategies. Drawing upon the economic opportunities precipitated by reduced debt levels, this research advocates for increased governmental expenditure in critical sectors such as infrastructure, education, and healthcare, positing them as instrumental in augmenting living standards and catalyzing economic growth. However, sustaining these gains mandates the perpetuation of reform momentum, the maintenance of fiscal discipline, and the cultivation of an environment conducive to investment and aid. Amidst a backdrop of multifaceted challenges, including constrained fiscal space, the specter of unsustainable debt, and susceptibility to external economic distresses, Somalia grapples with political instability, security vulnerabilities, and institutional frailty, underscoring the intricacies inherent in its journey towards recovery. To realize sustainable growth objectives, this study prescribes strategic imperatives encompassing economic diversification, bolstering creditworthiness, fortifying investor confidence, and fostering integration into the global economy. Augmenting public financial management frameworks emerges as a pivotal facet, necessitating concerted efforts towards institutional fortification. In essence, Somalia's post-HIPC phase signifies a pivotal juncture necessitating a delicate equilibrium between fiscal prudence and strategic developmental investments, underpinned by institutional strengthening, economic diversification, and social development, heralding the pursuit of stability, inclusivity, and prosperity for Somalia's future.