The article analyzes the current status, development trends and challenges of teacher education in Kosovo and Albania in their efforts to be aligned with current trends of a more research-based, practice and skills oriented teacher education system. The article compares the provision of pre-service teacher education and draws conclusions related to future development trends of the two countries as they aim to meet the best international standards and practices in shaping pre-service teacher education from a research-based and practice orientation. This article is based primarily on findings from desk research conducted at public universities in Kosovo and Albania, more specifically analyzing the university curricula and other documents related to the provision of teacher education courses. In addition, the research involves the analysis of work completed and documents produced as a result of the 2009-2011 Trans-European Mobility Program for University Studies (TEMPUS) Project “Development of Master Study Programs in Education” (DEMED). The article outlines the similarities and differences of teacher education systems in Kosovo and Albania and emphasizes the need for small countries to co-operate on joint reform that leads to wider regional impact and facilitates mobility of staff and students. Identifying common goals is thus important. The two priority goals for these two countries are: development of practice and research-based teacher education. Conclusions are presented with the intent of findings being extrapolated to similar small, developing countries.