In the new global arena which has been marked by intense globalization and power dynamics, the applicability of NATO has changed. The role of NATO is traditionally associated with military and political roles, but these functions are becoming increasingly mixed with the economic diplomacy. The paper will address the relevance of NATO in the era of economic diplomacy which is a multifaceted topic considering how the security aims of the alliance overlap economic interests between member and partner states. Economic factors are increasingly influencing the strategic policies of NATO as global issues like cybersecurity, imbalances in trade and energy security arise. This paper examines how NATO has adjusted to such changes and how the economic and security policy integration is achieved, economic sanctions and its participation in general multilateral economic initiatives. Also, it evaluates the impact of the NATO economic initiatives on the stability of ttempts to identify the strategic significance of the changing role of NATO in economic diplomacy in the formulation of global gohe global economy, cooperation in the region and the relations between it and non-member states. In the last resort, the study atvernance in the 21 st century.