This chapter examines the Romanian New Wave cinema movement and its unrealised potential for enhancing national identity, cultural diplomacy and economic development. Despite international acclaim for its minimalist aesthetics and realistic portrayal of post-communist life, Romania failed to capitalise on this success through inconsistent film policies and lack of sustainable support. Drawing on cultural economy theories, the study explores how these New Wave films engage with place and identity, comparing Romania’s approach with more successful models in neighbouring countries. It argues that Romania missed opportunities to boost its soft power and global cultural influence through cinema, largely because of political factors hindering international collaborations. The research employs a multidisciplinary approach, incorporating film studies, cultural economics and tourism perspectives. It highlights the importance of strategic vision in film industry policies and their impact on national branding. The study concludes by proposing ways in which Romania could still leverage its cinematic achievements for cultural and economic growth.