** Lithuania’s higher education and VET systems are characterized by a diverse range of education providers and programmes, with three main types of institutions offering vocational and higher education: universities, colleges, and VET providers. The regulatory framework strictly governs the design and delivery of study programmes, imposing limitations on institutional and academic staff innovation. External evaluation and quality assurance systems, led by SKVC for higher education and KPMPC for VET, aim to ensure provider quality and alignment with labour market needs. However, challenges remain in the coherence, effectiveness, and efficiency of these systems, as well as the availability of supports for pedagogical enhancement and innovation. The report recommends revisions to regulatory frameworks, a shift towards a risk-based quality assurance model, and the development of a national ecosystem for pedagogical enhancement and innovation to strengthen the quality and labour market relevance of teaching and learning in Lithuania**.