Prior to the war, Ilidza municipality was one of the five strongest in Bosnia and Herzegovina, and one of the ten strongest in the whole of Yugoslavia. The war had a devastating effect on the city's economy, but today it is slowly starting to recover. Several important local companies are based in Ilidza. The city's economy is based on food processing, electronics, and manufacturing.
One of the most important parts of Ilidza economy is its tourism. The natural beauty of the area is used to the city's advantage, attracting many tourists from both abroad and as near as neighboring Sarajevo. There are plans for future development to enhance tourism, including hotels and a cable railway line to Mt. Igman
