The process of postcommunist transition in the countries of the former Eastern bloc as well as the countries that have emerged after the dissolution of Soviet Union and the former Yugoslavia have necessitated the formulation of new educational legislation and the initiation of structural reforms at all levels of education. Redefinition of national policy within the sensitive tertiary education sector has also been an important subject of many national and international debates regarding the direction of reform. This article examines the present state of the affairs within tertiary education, highlighting some of the critical issues facing the educational communities of Lithuania and Serbia as they begin to engage in the process of European integration. It follows with a consideration of the implications of current reforms for future educational development as well as possible solutions to existing dilemmas. (Contains 3 endnotes.)