We extend Mode-Coupling Theory (MCT) to inhomogeneous situations, relevant for supercooled liquid in pores, close to a surface, or in an external field. We compute the response of the dynamical structure factor to a static inhomogeneous external potential and provide the first direct evidence that the standard formulation of MCT is associated with a diverging length scale. We find in particular that the so called "cages" are in fact extended objects. Although close to the transition the dynamic length grows as |T − Tc| −1/4 in both the β and α regimes, our results suggest that the fractal dimension of correlated clusters is larger in the α regime. We also derive inhomogeneous MCT equations valid to second order in gradients.It is becoming increasingly clear that the viscous slowing down of supercooled liquids, jammed colloids or granular assemblies is accompanied by a growing dynamic length scale, whereas all static correlation functions remain short-ranged. This somewhat unusual scenario, suggested by the experimental discovery of strong dynamical heterogeneities in glass-formers [1], has been substantiated by detailed numerical simulations [2,3,4,5,6], explicit solution of simplified models [9,10] and very recent direct experiments [7,8] where four-point spatiotemporal correlators are measured. From a theoretical point of view, our understanding of supercooled liquids owes much to the Mode-Coupling Theory (MCT) of the glass transition. Although approximate in nature, MCT has achieved many qualitative and quantitative successes in explaining various experimental and numerical results [11,12]. In spite of early insights [13], the freezing predicted by MCT was repeatedly argued to be a small scale caging phenomenon, without any diverging collective length scale. This, however, is rather surprising from a physical point of view, since one expects on general grounds that a diverging relaxation time should involve an infinite number of particles [15]. Building upon the important work of Franz and Parisi [14], two of us (BB) [16] suggested a way to reconcile MCT with physical intuition. Within a field theory formulation of MCT, BB showed that the four-point density correlation function is given by the so-called 'ladder' diagrams that indeed lead, upon resummation, to a diverging dynamical correlation length and spatio-temporal scaling laws. BB also proposed a Ginzburg criterion that delineates the region of validity of MCT, which breaks down in low dimensions. Still, the field theory language used in [16] is not trivially related to the standard, liquid theory formulation of MCT [11]. Indeed recent work has shown that the field theory is laden with subtleties [17,18,19], in particular related to the Fluctuation-Dissipation relation. The aim of the present letter is twofold. First, we show how the results of BB may be recovered and extended to obtain testable, quantitative predictions on absolute dynamic length scales, entirely within via the standard, projection-operator based MCT [11]. Our detailed analysis predicts...