After a decade of isolation from international processes following Yugoslavia’s disintegration, the Republic of Montenegro currently aspires to become a part of the European Union. This comes with many challenges to adopt EU social policy principles and its social protection system including EU standards, requirements and best practices. The aim of this chapter is to scrutinize the social protection system in Montenegro by analysis of the legal framework, organization of institutions, financing mechanism as well as benefits and allowances schema. The study was based on secondary research using data from legal documents, the Statisitcal Office of Montenegro, the Ministry of Labor and Social Welfare of Montenegro and the European Commission. The chapter examines the following topics: legal framework, structure of social protection, financial benefits and allowances, financing system of social protection and strategic reforms. The study indicates the need for a strong continuing reforms process of the social protection system to improve structure and quality of service provision, achieve broader social justice, increase protection of vulnerable groups such as elderly people and create better child protection system.