In this article a presently existing public administration system in Lithuania as well as the position of municipalities(subjects of local self–government) in that system are described, the features of the „real” local self–governmentare being formulated, potentially possible groups of problems of local self–government are distinguished and currentlymain problems of municipalities of Lithuania are indicated.The author of the article notes that in Lithuania up till now the concept of the „real” local self–government hasnot been clearly and unambiguously defined yet. That makes the formulation of target goals, tasks and means as wellas their implementation developing the system of local self–government more difficult. Seeking at least partly to fillthe existing gap, the author of the article formulates eight features of the „real” local self–government.Having defined the problem of local self–government as a deviation from the „normal” conditions for thefunctioning of the local self–government system that cause negative changes in the system, the author of the articleshows the relationship between the „normal” conditions for the functioning of local self–government and the formulatedfeatures of the „real” local self–government. According to this relationship the author of the article indicateseight potentially possible groups of problems of local self–government.On the basis of the accumulated knowledge and acquired experience the author of the article points out fivegroups of currently particularly important problems for local self–government of Lithuania, which are conditionallynamed as follows: 1) suppressed independence; 2) insufficient constructiveness of the relationship among differentlevels of government; 3) economic problems of municipalities; 4) not involving community members in managinglocal affairs; 5) inertness of municipalities.