This chapter presents a description of an ongoing restructuring of the entire higher education system in Laos, with a particular emphasis on its implications for one of its three university-level postsecondary institutions, the University Pedagogical Institute (UPI). The UPI was founded in 1964 as the National Institute of Pedagogy for the training of primary and lower secondary school teachers. The UPI was to be converted into a comprehensive higher education institution with bachelor’s level programs in a full complement of arts and sciences disciplines. There are four key policy that will have to be addressed during implementation of the university rationalization project are discussed with particular reference to their implications for UPI: institutional autonomy, rationalization of staffing, cost recovery, and student admission. National University of Laos (NUOL), will include as organizational units faculties of education, engineering, medicine, and agriculture. The UPI and the National Polytechnic Institute were the two university-level institutions under the control of the Ministry of Education (MOE).