After a first peak in the late 1960s and early 1970s, early childhood education and care (ECEC) again plays an important role in the educational system in Austria. Over 90% of 3-5-year-old children attend non-familial institutions such as preschools. A consequence of this development is that new challenges arise, which have become the subject of scholarly discussions and education policies. A first challenge refers to the academization of the training of preschool teachers. A second challenge focuses on the need to improve interaction quality in preschools. A third challenge relates to improvements in the degree of collaboration between preschool and primary school. A fourth challenge is the need to establish a research infrastructure in ECEC in Austria to gain country-specific research evidence. This contribution aims to elucidate and examine these challenges, along with current education policies to improve ECEC in Austria.