This abstract discusses the role of the Medan City Government in developing the people's economy through public policy and community empowerment. The background of this study is based on the importance of strengthening the community-based economy as the main strategy in facing global economic challenges and improving citizen welfare. The study aims to analyze how public policies implemented and community empowerment efforts by the city government are able to encourage the growth of the people's economy in Medan. The method used is qualitative with a literature review approach, namely examining various sources of literature such as journals, books, and relevant policy documents. The research findings show that the Medan City Government has initiated various empowerment programs, such as entrepreneurship training, facilitating access to capital, and strengthening local economic institutions. However, there are challenges in terms of cross-sector coordination and limited resources. The implications of this study emphasize the need for synergy between the government, society, and the private sector to create an inclusive and sustainable people's economy ecosystem, as well as the importance of continuous evaluation and policy innovation to strengthen community empowerment at the local level.