This thesis investigates the financial management practices of local authorities in Ukraine during the ongoing war that started after a full-scale invasion in February 2022. The study was conducted through a qualitative case study approach, with data collected from analysis of official documents and reports, interviews, and observation of relevant activities. Using the complexity theory as a lens, the study considers the financial system as a complex adaptive system. It identifies the challenges associated with budgeting, spending, and managing funds during an armed conflict. The study highlights the importance of understanding the complexity of the financial system and the various factors that influence it, including the impact of the war on the country's economy, the need for flexibility and adaptability in financial management, and the importance of securing financial resources to support the restoration process. The findings reveal that local authorities faced significant challenges in managing their finances during the war, including limited financial resources, reduced revenues, increased expenses, and difficulties accessing external funding. Despite these challenges, local authorities adopted various strategies to cope with the situation, including prioritizing spending, seeking alternative funding sources, and implementing cost-saving measures. However, the study also identified several limitations, including the small sample size and the need for more generalizability of the findings to other contexts. Nevertheless, the study contributes to the understanding of financial management practices in a conflict-affected context and provides valuable insights for policymakers and practitioners working in similar contexts.