Public administration management in most developing countries is changing rapidly through reform processes with respect to public service delivery and the stimulation of economic growth. That change, in general is affected by the need for policy reform, has resulted in different structural public management reforms known as decentralization and ‘the new public management’, reflecting a movement away from the old values and norms of public administration management. This paper discusses the issue of local government reform processes in Kosovo in parallel with the new public management processes in the country. Local government reform has been and is a priority of the institutions of the Republic of Kosovo, and as such, it has gone through various stages of its evolution. In other words, special emphasis should be put also on the achievements, progress, challenges and difficulties of local government reform processes. As such, this paper reflects the ontological aspect of the new public management approach in local government reform in the Republic of Kosovo, starting from the development stages of this extensive process up to the current situation, including falls and downs of this process. Therefore, this paper reflects empirically (through research) the current status of local government in Kosovo, as well as the difficulties faced by the local government. As a result of the elaboration of this paper, we have come to the conclusion that local government has made a significant progress since the end of the war. However, much remains to be done in this regard, especially in terms of: transparency, accountability, citizen participation in decision-making, and many other processes, which further strengthen local democracy in the country.