The rise of the gig economy has fundamentally altered traditional employment structures, prompting a reevaluation of Human Resource Management (HRM) practices. As organizations increasingly engage freelancers, contractors, and platform-based workers, the conventional boundaries of the workforce have expanded, creating what is now referred to as the "extended workforce." This research explores how the gig economy is reshaping the role of HR professionals, emphasizing the need for adaptive strategies that align with the fluid and dynamic nature of gig work. The paper examines key challenges HR faces in this context, including legal compliance, workforce integration, performance management, engagement, and the maintenance of organizational culture among non-traditional workers. It also highlights the strategic opportunities the gig economy presents, such as access to diverse talent pools, cost flexibility, and rapid scalability. By analyzing case studies and industry data, the study uncovers how forward-thinking HR departments are evolving from administrative functions to strategic partners capable of managing both permanent employees and gig workers in cohesive, inclusive environments. Furthermore, the paper investigates the tools and technologies that support this transformation, such as AI-driven talent platforms, workforce analytics, and cloud-based HR systems. The findings suggest that HR’s role is shifting toward becoming architects of workforce ecosystems, requiring a balance between agility and governance. This research contributes to a deeper understanding of the gig economy’s implications for HRM and provides actionable insights for organizations aiming to effectively manage an increasingly fragmented and decentralized workforce