ENThis article discusses the transition of Lithuania after its freedom from annexation to the Union of Soviet Socialist Republics (USSR). The tradition of local democracy and parliamentarism in Lithuania developed during the Middle Ages. However, this formation was interrupted by two occupations. When the country sought to re-established its independence, first at the beginning and then at the end of the twentieth century, the achievements of the neighbouring countries were followed by Lithuania hence no specific Lithuanian model emerged. The system of democracy at the central government level is founded on a semi-presidential management model, although there are several claims that is has a dominating role of the parliament. In practice, power is divided, which is crucial in a democratic state. While Lithuania has a decentralized law on self-government at the local level, this is restricted and controlled by a central government unable to develop local self-government and by local politicians who cling to their deemed valuable links with the central government hence unable to resist when their powers of self-government become weakened. And while Lithuania is in the process of developing into a modern democratic state, the nation is still on its way to maturity where more challenges and difficulties will arise.