This study explores optimal public debt management in Uzbekistan by integrating global benchmarks with local economic conditions. Using a modified debt sustainability framework and Quadratic functional model regression analysis of Uzbekistan data (2010–2022), we identify a growth-maximizing debt threshold of 58% of GDP—with a 2% fiscal buffer—to balance infrastructure financing with fiscal stability. Stress tests indicate that exceeding this level can destabilize debt dynamics under adverse shocks. Recommendations include formalizing a 58% debt ceiling, diversifying funding sources, hedging currency risk, and strengthening domestic capital markets.