The Western Balkans play a significant role in China’s debt trap to expand its influence. China uses debt-trap diplomacy to enhance infrastructural growth and foster long-term dependency. This article analyzes Montenegro as one of the first cases of becoming a victim of debt-trap diplomacy. Chinese investments were made in the country due to the construction of a highway linking the capital with the port city of Bar. However, the circumstances changed in China’s favor with the implementation of high interest rates and mounting debt. As a result, the paper examines the case of Montenegro to understand the causes and roots of debt-trap diplomacy and how Montenegro fell into this challenge. The challenge is more than just a simple bilateral issue between China and Montenegro; China has continued to spread its influence in the region for an extended period by providing loans to ensure long-term geopolitical control. The paper argues that Montenegro’s experience with debt-trap diplomacy reveals issues with the loans and the associated risks. It emphasizes the need for countries in the Western Balkans to develop strategies for managing debt and protecting their sovereignty. By understanding the case of Montenegro, debt-trap diplomacy is analyzed through its lending practices and outcomes. In the end, the paper concludes with the importance of government accountability and transparency in projects funded by foreign powers to prevent future challenges of debt-trap diplomacy.