In an era marked by increasing geopolitical tensions and institutional instability, the concept of globalisation faces unprecedented challenges. This paper explores the evolving dynamics of global integration amidst weakened institutions, rising protectionism, and how Australia, as a middle-power nation reliant on international trade and investment, must adapt to a destabilising global landscape. Through an analysis of current global trends, economic data, and policy shifts, we examine the impacts of institutional fragility on global trade, investment flows, and international cooperation. The analysis examines the multifaceted impacts of weakened global institutions on Australia’s economic, political, and social spheres. The study highlights the necessity for adaptive strategies in globalisation, focusing on resilient supply chains, diversified trade partnerships, and enhanced global governance frameworks. By proposing a multi-faceted approach to sustain global interconnectedness, this paper underscores the need for robust, flexible, and inclusive globalisation practices that can withstand the pressures of a destabilised world. Key strategies are proposed to enhance Australia’s resilience, including diversifying trade partnerships, investing in domestic industries, and strengthening regional alliances. The paper also highlights the role of innovative policy frameworks in navigating the complexities of global interdependence amidst institutional fragility. The findings aim to inform policymakers, business leaders, and scholars about the policy adjustments required to navigate an increasingly fragmented global landscape.