In recent years, ASEAN has emerged as a dynamic economic hub, experiencing rapid urbanization and increasing integration into the global economy. While international trade and urbanization can be powerful drivers of economy, their unmitigated growth can lead to severe negative consequences. Understanding this complex relationship is crucial for maximizing economic opportunities and mitigating negative consequences of trade and urbanization. This research employs CS-ARDL methodology to analyze of the relationship between urbanization, international trade, economic growth, productivity, and employment in eight ASEAN countries from 1993 to 2022. The results indicate that while international trade positively contributes to productivity and employment, urbanization does not have a statistically significant impact. In the short run, 1% increase in trade is associated with a 0.1% rise in productivity and a 0.03% increase in employment, but a 0.47% decline in economic growth. The negative relationship between trade and economic growth aligns with previous studies for low-income countries. Given the lower-middle-income status of several ASEAN nations, it is recommended to enhance production capabilities, transition to higher value-added exports, and reduce trade deficits. By carefully managing urbanization and trade, ASEAN countries can harness the potential benefits of these forces while mitigating their negative externalities.