Description: In Lithuania, after joining the EU, the population decreased by almost 30 percent due to economic migration. Cities previously positioned as industrial, have been affected. In order to manage the demographic situation, the state supports the attraction of foreign investments and the creation of new jobs. One of the support instruments is the promotion of free economic zones and the development of industrial parks. FEZ operates successfully in Kaunas, Klaipėda, so other cities also seek to attract investors by offering FEZ in their territories and forming land plots and other necessary conditions for the industry. Alytus is seeking to establish FEZ, for this reason, Smart Continent has been hired to prepare a feasibility study for the establishment of a FEZ. The aim of the Alytus FEZ feasibility study is to assess the opportunities to establish it in the planned territory. Three possible territories were assessed according to the following criteria: the way of using the territories of functional zones, the area of the territory required for the development of FEZ activities and the possibility to carry out greenfield investments. The study also answered the question about the possibility of recognizing the Alytus FEZ as a project of state importance.