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The purpose of this dissertation is to illuminate, discuss and analyse on the Gornachev‘s perestrolka. The reform policy in this study is defined to cover economic, political and social field of the current Soviet Union. The methodology adopted is document analysis with over time and contextual analytic technique on the basis of speeches, public reports and other literary documents of Gorbachev. The dissertation is organized with 6 chapters : following the introductory part of the 1st chapter, the background of Gorbachev's reform policy is overviewed in terms of its historical roots, socio-economic and political factors in the 2nd chapter. 3rd chapter is the main environmental variables on perestroika. From 4th to 5th chapter as main chapters of this dissertation, the content of Gorbachev' s reform policy, as an answer to the question of what is his reform policy, is analysed and discussed in terms of his main concept-perestroika. The last chapter is devoted to evaluate and conclude the main contents of our discussions on the basis of current reality, limits, future prospect, etc. The current Gorbachev's new challenge essentially arised from the inertia of the Stalinist economic system of central planning and state control which has outlived its usefulness and has become counter-productive. In this system, no wonder the common people has been cynical and alienated : economy as a whole does not work so dfficiently While economic reform is the top priority, it is quite natural to be accompanied by socio -cultural, political, and foreign policy reforms. However, in their essence, most of Gorbachev's reform acts seem designed to promote his economic reform. The concept of perestroika' represents the effort of restructuring of the deeply rooted system of central planning. Its main feature is the diminution in the role of central planning and its organization, Gosplan. The main agenda for change contains a formidable accumulation of problems calling for Gorbachev's boundless energy and seemingly serious socio-political opposition. Besides economic stagnation, these include widespread inefficiency, mismanagement, corruption, alack of in incentives to do better, drag abuse, alcoholism, increasing defense expenditure as a result of East-West arms race, and so on. In the economy, the most for-reaching reform acts has been introduced : enhancement of the autonomy of the enterprise and its manager, introduction of new incentives via new price and budgetary systems expansion of private market represented by the Private Enterprise Law, which permits to manage small-scale private business. Public criticism and realism are openly recommended in Mass-Media, arts, and literature The control from the above is linked closely with the control from the bellow in the politica as represented by new election system. However, the socio-political reactions are high, mostly from the conservative party elites. Many common people remain as outsiders. Nevertheless, if Gorbache succeeds in consolidating his power base among the new technocrat elites, and if international relations keeps remaining stablized, the prospect of perestroika would not be so pessimistic.