In the attempt of addressing and managing properly current spatial development challenges, in the last decade, spatial regulation in Kosovo is undergoing the second cycle of legal changes. Following the institutional set up of the Ministry of Environment and Spatial Planning (MESP) in 2002, the Law on spatial planning was adopted in 2003. Compared to previous legislation, the newness of this law is the introduction of strategic spatial planning approach in Kosovo and delegation of comptences in the field of spatial planning to the local authorities (municipalities). In the view of easinning legal procedures and allowing investments from local and foreign businesses in Kosovo, with the decision of the Goverment of Kosovo on Legislative Strategy 2012, a set of laws have undergone legal changes. This was a basis which determined drafting of the new Law on Spatial Planning, preceding the one on Construction in 2013. Current state of play is that the new Law on Spatial Planning (LSP) is promulgated by the President of Republic of Kosovo on August 2013. With this legislation different planning system is set going along with the new requirements on drafting and implementation of spatial planning documents both at local and central level. Subsequently, there will be new challenges in the implementation of this legislation especially when having in mind that municipal capacities are still weak in spatial planning and urban management. The paper aims at identifying new challenges in the implementation of the new upcoming LSP and provides recommendations how to overcome this.