National higher education reform in Lithuania faces challenges from global and European developments. Since independence in 1990, Lithuania has implemented various higher education policies, moving from non-intervention to an economy-driven approach to a more liberal-conservative reform. Most recently, new policy paradigms call for a smart, open and creative society and economy based on knowledge and innovation. However, achieving sustainability in higher education reform remains an ongoing quest, balancing priorities like efficiency, excellence and entrepreneurship with effective implementation and developing a holistic approach considering economic and social goals.