Sustainable development is a dynamic process based mainly on quantitative and qualitative changes in the economic, social and ecological spheres in accordance with the needs and preferences of the commune's inhabitants. Municipal management, however, creates favourable conditions for local development and constant improvement of the quality of life of residents. The aim of the study is to analyse municipal management from the perspective of sustainable development. The basic research method used in the study is indicator analysis. The indicators selected for development describe the concept of sustainable development in fundamental areas of the municipal economy, such as energy, water and sewage, waste, municipal housing, public transport and road infrastructure. The research was conducted in Poland in the Warmian-Masurian Voivodeship in 2020-2022. The subjects of the study are the 12 municipalities of the Olsztyn district. On the basis of the results obtained, it can be concluded that the best results in terms of creating a sustainable municipal economy are obtained by municipalities which have carried out the largest number of projects in this area, as well as those which have the largest share of forests and waters in the municipal area, e.g. Stawiguda, Dywity, Dobre Miasto, Gietrzwałd. The implementation of sustainable development in municipal management is determined by many economic, social, environmental, spatial and technological conditions. The research will enable local authorities and decision-makers to practically implement the concept of sustainable development in the municipal economy and may also be used in the process of planning investments and local activities, taking into account the economic, ecological and social aspects. The research constitutes the basis for further research work related to the practical implementation and management of sustainable development in municipal management.