Today millions of people are working abroad, away from their families and sending money to support the daily needs of their family members in food, clothes, etc. Currently, migrants comprise 3.0% of world population and annually they send more than USD 300 billion, which creates welfare in receiving countries. This research work was mainly concerned with the study of social and economic impacts of external labor migration and incoming remittances on local development in Uzbekistan. The study consists of seven chapters, where a thorough analysis of existing literature and studies in field was done and based on empirical analysis and survey results and case study findings graphic models of the impact of labor migration on sending country was elaborated. Moreover, the work provides recommendations on how to mitigate negative outcomes of out migration of labor force on Uzbekistan and on the ways to increase efficient use of incoming remittances to create sustainable income generation sources for migrants’ households