This article delves into the idea of “smart cities” in Morocco, emphasizing the role of economic diplomacy, innovation, and entrepreneurship in driving urban development progress. The research starts by providing an examination of the concept of a “smart city” and its various aspects as discussed in existing literature, laying the groundwork for comprehending its fundamental components. The smart city implementation in Morocco is analyzed through three main examples: Casablanca, Benguerir, and the Zenata Eco-City. These case studies demonstrate how smart city principles are implemented in practice and the importance of international partnerships in advancing technological and economic development. Moreover, the article examines how economic diplomacy strategically contributes to promoting innovation, entrepreneurship, and sustainable urban development. The study showcases how Morocco’s diplomatic strategies promote collaboration, attract investment, and improve digital business ecosystems by exploring the connection between economic diplomacy and the smart city concept. The main approach used is qualitative, focusing on analyzing official reports, academic literature, and institution publications regarding smart cities and economic diplomacy. This is supported by examining key urban projects in Morocco through case study analysis. The results of this study show that combining economic diplomacy with innovation and entrepreneurship is crucial for the effective execution of smart city projects, leading to sustainable economic development and establishing Morocco as a frontrunner in digital urban change.