The purpose of this paper is to examine the impact of the substantial Lebanese Diaspora on Lebanon’s economy during the years 2008-2010, a period of substantial international economic uncertainty. Despite the vast literature revolving around diasporas and the financial benefits they tend to provide their homeland, little is known about how an active diaspora affects a state’s ability to withstand an exogenous economic shock. Certainly, the literature is silent on the role of Lebanon’s diaspora. The paper begins with an overview of the theoretical literature that addresses the role of a diaspora in the economy of their homeland, and then proceeds to examine the case of the Lebanese diaspora. Perhaps surprisingly, despite the global economic recession, Lebanon’s economy actually grew during the 2008-2010 period. In 2009, for example, growth was pegged at a staggering 9%. Following an analysis of the economic data, the paper will argue that, indeed, the Lebanese diaspora was instrumental in ensuring Lebanon’s continuing economic growth. They continued to invest strongly in key sectors of the economy - real estate, banking and tourism - the very sectors that have long dominated economic activity in Lebanon. A number of conclusions can be reached. 1) The Lebanese economy is somewhat immune to global economic downturns because its large diaspora remains attracted to the country and sees it as an important place to invest. 2) Conversely, however, the economy is worryingly dependent on the diaspora for its economic prosperity. Should diasporic interest in Lebanon weaken, due to, for example, political instability and/or a security breakdown of some sort, the economy would be in substantial trouble. 3) And, finally, with respect to comparative lessons, the Lebanese situation may be unique, as the particular nature of its economy – the heavy reliance on banking, tourism, and real estate – played to diasporic investment priorities.