The nationwide study on spatial development scenarios provides a scientific basis for guiding Estonia’s spatial development up to 2050. The study examines four possible development scenarios and shows that the current concentration of population and jobs in Tallinn exacerbates demographic and economic challenges in other parts of Estonia. Balanced development requires at least ten economically strong “locomotive” towns across the country, which would ensure better accessibility to jobs and services. Compact settlement development, curbing suburban sprawl, creating a high-quality living environment, and supporting the return of young people are considered crucial. More compact settlements help reduce environmental impact, travel costs, and public sector expenditures, while supporting sustainable and regionally balanced development in Estonia.