The SHAPE-WB project is a collaborative initiative aimed at modernizing vocational education and training (VET) systems in Bosnia and Herzegovina (BiH) and Montenegro (MNE) by focusing on smart home and automation technologies. This project will be implemented in cooperation with EU countries - Croatia and Spain - leveraging their expertise in innovation and education.The importance of smart home systems and automation cannot be overstated, as these technologies are rapidly transforming industries and creating new job opportunities. However, the Western Balkans face a significant challenge in addressing the skills mismatch between VET graduates and labor market needs. The SHAPE-WB project tackles this issue by developing modernized curriculum, enhancing teacher training, and fostering collaboration between VET providers and employers.By aligning training programs with industry demands, SHAPE aims to improve the employability of VET graduates and contribute to regional economic growth and social inclusion. The project's objectives are aligned with regional and European policy priorities, such as the Economic and Investment Plan for the Western Balkans and the European Training Foundation's recommendations for VET modernization.Through this collaborative effort with EU partners, the SHAPE-WB project will create a lasting impact on the VET landscape in BiH and MNE, fostering sustainable partnerships and enhancing the quality of VET programs. This initiative not only addresses the skills mismatch but also promotes the adoption of smart home technologies, which are crucial for sustainable development and energy efficiency in the region.By working together with EU countries and leveraging their expertise, the project ensures that its outcomes are aligned with European standards and best practices, contributing to the broader goal of integrating the Western Balkans into the European education and innovation ecosystem.