Economic progress is the most important goal of every country in the world. They achieve it based on different models and strategies, both short-term and long-term. The two determinants that have defined international relations for centuries are military power and the politics of force. Globalization has made the world around us never more intertwined, more complex, connected, and more competitive. Today, real strength is not based solely on the military and / or control of a particular territory, but also on the ability to integrate with the global economy. Thus, economic diplomacy is an unavoidable area of interest within the progress of any country in the world. It has become one of the most important factors in the foreign policies of states and a tool for achieving foreign policy goals. Economic diplomacy has existed since the earliest times with the beginnings of trade relations in the world. The complexity of the field of economic diplomacy is reflected in its very name, which combines issues of economy and issues of diplomacy. These are areas that require special knowledge and skills separately. Therefore, it is important to approach the issue of economic diplomacy thoroughly, with quality and comprehensively. We can argue that economic diplomacy is one of the main components of any country’s foreign policy that aims to promote a country’s national economic interests, thereby contributing to economic growth and prosperity. Economic diplomacy works to promote trade, encourage foreign direct investment, achieve cooperation in science and technology, promote tourism and advocate for the interests of the national business community. Despite the breadth of this topic, the final paper seeks to illustrate what economic diplomacy really is and what it does.