ENBackground.The Baltic Sea region is currently one of the tensest areas in Europe, with Russia potentially challenging the international order by provoking a new confrontation with the North Atlantic Treaty Organization (NATO). In this context, the Baltic States of Lithuania, Latvia, and Estonia are developing their cyber security capabilities, which provides an intriguing example of how small states with an aggressive neighbour can operate. The perceived threat is driving the development of cyber capabilities, and policymakers are prioritizing efforts to strengthen their digital capabilities. Methods.This article aims to examine the security challenges faced by the Baltic States in the digital environment and their strategies for enhancing digital capacity building competencies. Additionally, the article focuses on the Baltic States' efforts to build and strengthen cyber capabilities, which serve as the foundation for their cyber security policies. To accomplish this, data from the Digital Economy and Society Index (DESI) was utilized, employing research methods including quantitative, qualitative, and comparative analyses. This approach aimed to evaluate and compare the progress in digital capabilities among the Baltic States. Additionally, an analysis of strategic documents was conducted to gain insight into each country's perspective on cyber security and to identify opportunities for the development of this field in consideration of available resources.Results. The findings emphasize the Baltic states' dedication to bolstering their cyber resilience, primarily motivated by the perceived threat from Russia. The study underscores the intricate relationship between socioeconomic factors and a nation's cyber capabilities. Conclusions. The conclusion drawn is that their endeavours to establish and enhance cyber capabilities constitute a pivotal component of their cybersecurity strategy, thus contributing to regional stability and NATO's collective defence. Keywords: cyber security policy, Baltic States, digitalisation, digital potential, cyberpower. [From the publication]