The relevance of the topic of scientific research is determined by the problem of limiting the funding of domestic institutions of higher education. The problem of higher education institutions is that their progressive development is possible only in conditions of full and systematic financial support of educational projects, availability of both public and private forms of their financing; in particular, in the form of grants. The purpose of this research work is to characterize the role, place and key aspects of grants in the financial system of higher education institutions of Ukraine. The basis of the methodological approach in this research work is a qualitative combination of methods of critical analysis of scientific and methodical literature and legislative documents regarding the financing of higher education institutions.The study of the role and place of grants in the system of financial support of higher education in Ukraine and their main aspects should be considered the main results obtained as part of this scientific research. The place of grants in the financial system of higher education institutions is characterized and substantiated. Examples of sources of modern grant financing of higher education institutions in Ukraine are given. The key aspects of grants in the financial system of domestic institutions of higher education are outlined. The need was emphasized: expanding the attraction of grant funds in order to improve the quality of education and the efficiency of the functioning of institutions. The results of this scientific research, as well as the conclusions formulated on their basis, are of significant importance for modern domestic heads of higher education institutions, responsible for state financing of higher education institutions, heads of the Ministry of Education and relevant ministries and departments, and heads of donor organizations that plan to join grant funding programs scientific, educational or other university projects.Conclusions. Grant financing of higher education institutions relieves the budget of the Ministry of Education and provides flexibility to the financial policy of the institutions themselves, and leads to an increase in the scientific and innovative development of society.