Subject and purpose of work: The paper presents an analysis of investment activity in Biała Podlaska in 2008-2015 and evaluation of this activity by the local community. Main directions of investments, including funds from the European Union have been presented. Materials and methods: The paper has been prepared on the basis of the literature, programming documents of the city and own research based on the sample of 100 residents. Descriptive method, statistical analysis and graphical presentation of the results of research have been used. Results: The paper has confirmed that investments are a key factor in the development of every city and the use of this factor by means of the inflow of funds from the outside depends on the attractiveness of the city and the surrounding region and activity of the municipalities. The city of Biała Podlaska has undergone a deep restructuring and changed in the functional structure. Investments have been integrated into strategic and operational development objectives of the city. The level of investment in Biała Podlaska puts the city at the forefront of towns in the Lublin region and ensures stability of development. Conclusions: The research has confirmed the role of investments in urban development and the role of European funds in the investment process. In addition to the cognitive results the research has revealed the need to develop marketing activities and coordination, providing the possibility of better use of resources and geographical position to re-industrialization of the economy. The support of local authorities is needed to develop academic, industrial, transportation and logistics functions.