This chapter discusses Azerbaijan who can accept the Western European model of modernization without abandoning its cultural distinctiveness. There have been two models of modernization: capitalist and socialist. Each of these models has developed peculiarities depending on the historical and social character of the social system in which it has operated. It argues that an examination of the relationship between culture and civilization may be used to develop such criteria. The chapter explores the problems created by this cross-cultural clash by considering the relationship between culture and civilization in general, and in the context of Azerbaijan in particular. It investigates the process of modernization in Soviet Azerbaijan, and then modernization in postcommunist Azerbaijan. Modernization as a social process of changes to thought, behaviour, and activity of the people is attained by urbanization, industrialization, democratization, secularization, education, and media participation. It leads to the transition from a traditional to a participatory society by making the people mobile, active and innovative.