This paper is dedicated to the overall Public Administration Reforms process in Macedonia, putting a special focus on Decentralization process, which was most significantly initiated with the Ohrid Framework Agreement, signed in 2001. Decentralization constitutes a crucial element in the agreement because it is perceived as a serious mechanism for ensuring full participation of all communities in the social, economic and political flows. Decentralization started formally in 2005, with the transfer of certain competences from Central Government to Units of Local Self Government (municipalities). Such competences mainly include: health and social care, education, urbanism, culture, rural planning and local economic development. Based on the achievements regarding this process, one can simply conclude that despite progress in certain areas, there are still many vast issues lagging behind. Doubtlessly, it is the full introduction of fiscal decentralization the issue that has until present been subject to delays and postpone. Contrary to this, legal framework is an issue that although far from perfect, deserves some high praise. There have been some crucial laws put in place such as: Law on Self-government, Law on Territorial Organization, Law on Equitable Regional Development, Law on Financing of the Units of Local Self Government. Talking generally, the PA in Macedonia has permanently been subject to serious criticism from the international and domestic factors as well. Its weakest points are the lack of political will to create an apolitical environment in the overall system, inadequate staffing, high corruption rates, low service delivery etc.