Estonia is a new member state of the European Union, which was recognized due to its economic progress, but also it has regional problems. Regional policy measures are used to reduce regional inequalities and encourage the economic strengthening of individual countries. The aim of this thesis is to present characteristics of the regional development and regional policy in Estonia. After explanation of the main concepts, in this work are presented regional policy management system, changes in regional policy, problems and challenges of the Estonian regions are identified and different competitiveness indicators are compared. Separate chapter analyses chosen programs and projects of the regional development of Estonia, the results of the use of the EU funds where the benefits of these are confirmed. In the last chapter actual strategies that are connected with regional and broader development of the Estonia are described. Digital transformation is one of the significant development characteristics in Estonia, competitiveness indicators imply that Estonia is high on the lists, while future development is expected to be directed towards new goals such as climate neutral, an economy based on knowledge with a high quality of life.