The art of contemporary cinema is far more than just creative factors. Cinema is an industry, a constituent of a given country’s economy, which is why its development is largely defined by economic processes, and tax and other types of regulations applicable to this field. Promotion of national products in foreign markets impacts tourism and play a role in forging the country’s international image and global positioning. Cinema is an important topic in relations between states, and state-level agreements often offer excellent cooperation opportunities to filmmakers from different countries. The art of cinema largely depends on political factors, as evidenced by numerous examples in the past, with authoritarian governments defining the cinema of one country or another, subjecting it to severe censorship, and using it as a propaganda tool. Equally impactful, however, are the decisions by democratic authorities. Cinema is part of culture run in line with the officially defined cultural policy of a state, especially if film production if mostly state budget-funded. In addition, the development of national cinema is also influenced by the system of education, and its compatibility with the needs of the cinema sector. Technological progress, as one of the drivers of filmmaking, continues to recondition the rules of the filmmaking game on regular basis. Consequently, the issue of the technical capabilities of infrastructure and eth industry, along with the qualification of filmmakers, is just as relevant as ever. The present work is an attempt at analyzing these and other overlapping factors, especially given the fact that Georgian cinema is facing a crucial stage in its development, with a transition between two drastically different models underway. For decades, national filmmaking was incorporated into the Soviet system. And the subsequent reclamation of independence called for adapting to new reality and rebirth, which, needless to say, was related to myriad obstacles. Our study seeks to analyze the events of the past three decades in order to identify problems and challenges presently facing national cinema. That, in turn, will enable us to the picture as it unfolds, and to contemplate prospects, and assess how well the contemporary system of film production deals with difficulties. This work also seeks to study into the state cinema policy. The new form of government has overhauled the attitude toward the art of cinema by abolishing censorship, developing a new legislative framework, and formulating new principles for supporting the industry. At the same time, this normative material has yet to be scrutinized and juxtaposed with the experience of other countries, a must even to start discussing the effectiveness of the state policy on cinema. Our study will evaluate the creative characteristics of contemporary Georgian cinema, because the new regulations have already produced tangible results. Many films created in the past few years draw the attention of both local and foreign audiences. Georgian production has gained a foothold in the festival scene by garnering numerous awards. A new generation of filmmakers has emerged. Though boasting original visions and signature styles, they nonetheless create a new overall image for Georgian cinema. While analyzing their works, it is equally beneficial to consider the films created in the 1990s, which enables us to compare these two different phases in the development of Georgian cinema—to identify changes and trends in terms of theme, genre, and means of expression. In light of the challenges facing national cinema as identified in this work, and based on international experience in dealing with similar issues, we will try to formulate relevant recommendations, an action plan of sorts suggesting possible directions to channel the state support policy for film production. We will also point out regulations that hinder the development of the film industry. In this regard, the study is nearly unprecedented. As for our research methodology, it draws on the norms found in both Western and Georgian academic communities.