The paper analyses transformation process in Poland between 1989 and 2004. The goal of the paper is to clarify the most important steps in the economic policy that were carried out in this period. The structure of the paper follows this general goal. We first of all analyse economic development of the country before the fall of the communist regime because this determined the whole following process. Then we shortly mention political development that had a significant impact on the transformation process, and its results. In the next part we concentrate on the main steps in the economic transformation, and consequently devote place to specific aspects – for example privatisation. The final part analyses the main economic indicators of this period. We conclude that the transformation process achieved its main economic goal and the economy’s ability to grow increased.