This study explores the role of foreign aid in fostering socio-economic development, with a specific focus on international grants for promoting stability in post-independent South Sudan. The study aimed to: assess the effectiveness of international grants in fostering stability and socio-economic growth; evaluate the impact of foreign aid on poverty reduction, education, healthcare, and infrastructure; examine the link between foreign assistance and socio-economic development in newly independent nations; and enhance understanding of both the challenges and opportunities associated with foreign aid in South Sudan. A mixed research design was adopted, and data were collected from a purposive sample of 50 respondents, primarily comprising staff from the International Monetary Fund (IMF) and the World Bank operating in South Sudan. Data were gathered through interviews and structured questionnaires, supplemented by secondary sources including relevant literature and library research. Responses were analyzed using Microsoft Excel for electronic data processing. Findings revealed that foreign aid has contributed to South Sudan’s stability and socio-economic progress through interventions in healthcare, education, infrastructure, agricultural modernization, sanitation, and the construction of health facilities. Aid was found to have a notable impact on poverty alleviation and improving the standard of living, disaster response, and general public health and hygiene. The study concluded that foreign aid plays a multifaceted role in socio-economic development in post-conflict states by fostering diplomatic relations, enabling trade and cultural exchange, supporting employment, and enhancing human capital development. However, several challenges were also identified, including corruption, aid dependency, mismanagement of funds, and repatriation of profits. The study recommends the Government of South Sudan to reduce reliance on foreign aid by strengthening local production and fostering sustainable domestic development initiatives.