This study explores the critical role of vertical development in enhancing the sustainability, productivity, and market competitiveness of Uzbekistan's viticulture sector. Despite favorable climatic conditions, Uzbekistan's grape production remains fragmented and underdeveloped due to weak value chain linkages, limited technological adoption, and insufficient processing infrastructure. Drawing on global best practices from Italy, Spain, and the United States, the study identifies vertical integration as a strategic pathway to optimize production, improve quality control, and expand market access. A mixed-method research design is employed, incorporating qualitative data from interviews with industry stakeholders and quantitative analysis through SMART PLS modeling. The findings reveal that strategic integration across cultivation, processing, and distribution stages significantly enhances productivity and reduces post-harvest losses. Moreover, investments in processing facilities and technology adoption are shown to boost value-added production and improve export readiness. The study concludes with policy recommendations emphasizing the need for targeted investments, technological modernization, and enhanced government support to fully unlock Uzbekistan's viticulture potential. Vertical development, supported by robust policy frameworks and stakeholder collaboration, is presented as the key to sustainable growth and competitive advantage in international markets.