Defence and aviation industry is a high technology sector which is supported and developed by national policies. Over the last two decades, Turkish defence and aviation industry has determined its way as meeting the needs domestically and extending its market area. The aim of this article is to reveal the global, national and local dynamics of Turkish aviation and defence industry through the case of Ankara which has a leading role in the development of the sector in Turkey. First, the structural characteristics and the development process of defence and aviation industry in the world is put forward. Then the historical development process of the sector in Turkey and Ankara is presented. The local dynamics of the sector is evaluated through the position and capacity of large leading firms and small and medium sized firms (SMEs), the relation of these two different type of firms, and the problems of production organization in Ankara. Lastly, as a conclusion, the guiding strategies that should be developed through the relations of large firms and SMEs and production organization for the sustainable development of defence and aviation industry in Turkey and Ankara is discussed.