Abstract: The search for ways of effective economic development of modern Russia calls for a deep understanding of the economic aspect of Russian history. A special place and importance in this regard is occupied by the history of Russia of the XX century, with the exception of the 1990s, since it was during this era that the modernization of the country's industry took place. The study of the industrial development of the country in general and Khakassia in particular in the mid-1920s – early 1940s contributes to the disclosure of controversial issues in domestic and regional history, namely industrialization, cooperation. This will allow us to summarize the historical experience of those years (positive and negative), which can help in overcoming difficulties in the Russian economy through appropriate conclusions that can be made by authorities at various levels. It will also make it possible to predict the further development of the region, and then the country according to the most optimal option. Based on archival documents and literature, the author analyzes the main directions of industrial development in Khakassia in the mid-1920s – early 1940s. In particular, attention is paid to the dynamics of development and structural changes in the industry of the region, which during this period were contradictory. To a greater extent, there were positive trends: the emergence of new types of production, the combination of high quantitative indicators of development with the progressive development of qualitative ones. The technical equipment of industrial enterprises in the region has significantly increased. Negative aspects in the industrial development of the region were manifested in the disproportion in the sectoral structure of the industry (the predominance of extractive industries), lagging growth rates of qualitative indicators compared with quantitative, technical backwardness of a number of industries.