Abstract: The study focused on the challenges and prospects of Afghanistan’s economy. It is based on analysis and reviews of previous studies on the issues related to the Afghanistan economy. Afghanistan is one of the landlocked countries in Asia. The economy of Afghanistan has been affected by various challenges since 1979 A.D. Challenges such as foreign attacks, civil wars, political instability, foreign interferences, and illiteracy were the main reasons that arose so many other economic issues like poverty, unemployment, inflation, brain drain, capital flight, budget deficit, poor tax collection, low productivity, and the primitive agricultural system just to mention the few. Most of the studies conducted on the challenges and prospects or issues related to Afghanistan’s economy were based on secondary data and hence there are not enough studies in the area.