Russian military-industrial complex has experienced a long and difficult process through the transition from Stalinist model during the former Soviet Union period to the market-oriented model. In particular, the practice of transfer of military industry to civilian in the 1990s is full of twists and turns, which weakened Russian economic strength in a short term. However, Russia has gradually determined the further orientation of its defense industry, which laid a foundation for promoting the adjustments of its economic structure and the sustainable development of its economy. This article will focus on analyzing the restructuring path of Russian military-industrial complex theoretically and discuss thoroughly its tremendous impact on economic development.