Abstract: This paper examines the effectiveness of foreign aid in addressing the challenges associated with humanitarian crisis in third world countries. Guided by the dependency theory, the auhtors adopted the qualitative research method and relied on data drawn largely from secondary sources. Data were descriptively analysed. The study shows that although foreign aid is important, there is a great need to build local capacities that will run a long time even after aid has stopped. Aid works best when it is well-organized, tailored to the needs of the area and gives local organizations and people more control of the implementation process. Additionally, reducing humanitarian assistance may have a significant impact on third-world nations and may exacerbate instability in already fragile areas. This emphasizes how crucial it is to design a more sophisticated plan that places an emphasis on community involvement and local capacity building in order to successfully incorporate foreign aid into the framework of humanitarian emergencies in developing countries. The research highlights the limitations of aid in advancing sustainable development and emphasized the importance of a more sophisticated strategy with local capacity building and community engagement for properly situating foreign aids in the context of humanitarian predicaments in the third world states. Ultimately, the efficacy of foreign aid hinges on a comprehensive strategy that not only addresses immediate needs but also lays the groundwork for long-term resilience and self-sufficiency in aid-receiving countries.