This is a report written by dr. Srbijanka Turajlic. The author discusses the establishment of modern higher education system in accordance with the Bologna process. She names the main objectives within the system and gives analysis of the Serbian higher education system. Ministry of Education and Sports – Department of Higher Education is also presented. She also introduces the academyic system in Serbia - background, faculty ad the staff and some proposed solutions (defining teaching ranks and titles, establishing the rank-conferring procedure and criteria etc).