Abstract: While most developing countries reach middle-income levels, many become trapped in long periods of stagnation, with only a few achieving sustained development breakthroughs. This article proposes the Theory of Constructing Development Miracles, which reframes development as a purposeful national transformation shaped by governance choices, rather than a spontaneous outcome of market-driven growth. The theory identifies three mutually reinforcing transformations: (i) institutional change toward a developmental state capable of strategic coordination; (ii) economic restructuring from growth by expansion toward upgrading-based development; and (iii) the transformation of national capabilities from passive absorption to endogenous learning and innovation. Development miracles materialize when these transformations are aligned, generating cumulative and self-reinforcing dynamics that push national development trajectories beyond critical thresholds. Keywords: Development miracle, Middle-income trap, Developmental transformation, Developmental state, Structural transformation.