Decentralisation in Ukraine is an important factor in the development of a democratic system of government. The reform of local self-government aims to create new relations between citizens, local authorities, and the state. The aim of the article is to conduct a comprehensive analysis of the local government reform in Ukraine and other countries in order to identify its main advantages and disadvantages as well as indicate ways to overcome the existing shortcomings in this area. The study determined that decentralisation in the country leads to democratic transformations of society based on civic initiative and responsibility, as well as provides a decent standard of living and quality services at the local level. The introduction of decentralisation can be observed in almost all areas, including administrative, political, financial, and social. This significantly affects the potential of the population and increases the responsibility of public authorities to the population. There is an increase in the level of public services with regard to economic, legal, political, social, and ethnic issues. Finally, proposals were made to make changes in the field of local self-government in order to overcome the existing problems in this area.