The article stipulates that modernization is a part of globalization and aims to ensure qualitative changes in society and its structure and modernization of all spheres of the economic system, through the implementation of new goals and strategies. The main requirements today which the country faces in the process of integration into the European economic area, is the implementation of effective structural reforms, including modernization. The aim of the article is justification for introducing modernization changes in the country, the study of the evolution of modernization theory, analysis of existing approaches to understanding the concept of “modernization”. The methods of scientific research have been used in the article: a retrospective, grouping and summarizing, systems analysis, synthesis and comparison. Theoretical and methodological basis of scientific research constitute the works of local and foreign scientists on modernization. It has been established that the development of modernization took place in four stages (XVI century till now): early industrial (the manufacturing) modernization, industrial modernization, late industrial modernization, postindustrial modernization. Modernization theory was formed in XX century and has gone through several stages of evolution. Based on the research of the basic approaches to understanding modernization: the transition from traditional to modern; process associated with the implementation of scientific and technological progress to improve production and competitiveness of the goods, the enterprises of the country; strategic direction of the country through reforms in all sectors to improve the welfare of all members of society. According to the results of the study it has been determined that: modernization is a process that involves the simultaneous qualitative changes at all levels in all directions and affects all members of society; modernization is impossible without innovation, taking into account the historical and national features of the country; modernization involves improving the social, economic, political, cultural and environmental components of sustainable development; modernization involves the use of effective management systems. The scientific novelty of the research is creation of own definition of modernization - a complex process synchronous, high-quality, innovative transformations at all levels, in all directions, through the use of efficient management tools aimed at ensuring the welfare of all members of society and sustainable development. Because modernization is multifaceted and controversial phenomenon that is important for further research on this subject.