This study aims to describe the reality of the informal economy in Libya and examine selected international experiences in confronting hidden economic activity, focusing on the cases of Egypt and Turkey. The research adopts a descriptive approach to assess the scope and characteristics of Libya's informal economy using local and international data, alongside analytical and inductive methods to evaluate the policy interventions and strategic frameworks applied in both Egypt and Turkey. Findings indicate that Libya’s informal economy exceeds 33% of total economic activity, highlighting the need for structural reforms involving legal, regulatory, and institutional measures. The Egyptian experience underscores the value of legislative reforms to formalize unregistered activities, emphasizing unified laws and simplified administrative procedures to broaden the tax base. In contrast, Turkey's model demonstrates how digitalization and administrative reforms—through tools like electronic invoicing and smart auditing—can effectively detect informal transactions and enhance compliance. The study recommends the enactment of a unified law to regulate informal economic activities, simplify registration and licensing procedures, and offer a transitional period for formalization. It further suggests including legislative incentives, such as temporary tax exemptions or reduced social security contributions, and leveraging successful international practices by signing technical partnership agreements with countries that have implemented effective solutions................ Keywords: ...........analysis, informal economy, international experiences, Libyan context.