This paper aims to bring a short introduction to the new administrative-territorial reform in Albania. This new reform was considered extremely relevant by the government, as it would contribute to the implementation of new reforms addressed by the European Union. Decentralization is considered one of the main components of good governance. It provides better services at the local level, more transparency in decision making, accountability, efficiency and also tends to produce policies in accordance with the needs of communities, by avoiding a gap in representation. Decentralization of functions and competences is considered to be very important also for the management of projects and founds.Because of it, development projects are more efficient due to the inclusion of local people on their designation, implementation and supervision. As cited in the European Charter of Local Self-Government, “the principle of local self-government shall be recognized in domestic legislation and, where practicable, in the constitution”. The paper will focus on the changes that the reform brought, and on its negative and positive aspects, especially seen under the monitoring of European Union, as one of the recommendation for the European Integration.