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This paper aims to explore the development of the concept of competence in Lithuania beginning from the period of transition from the Soviet planned economy and post‐totalitarian regime to the market economy and democratic society and ending with the designing and implementation of the National Qualifications System and Qualifications Framework.

The paper takes the form of desktop research of scientific literature and analysis of documents related to competences and qualifications in Lithuania.

The understanding of competence in Lithuania varies between the official usage in the laws and policy documents, common usage in education institutions and the approaches of employers, and this differentiation of understanding is caused by complex reasons related to the development of education, world of work and society in the socio‐economic transformations. In the National Qualifications System and National Framework of Qualifications of Lithuania competences are understood to be a bridge between the system of activities and the system of education.

The research involves mainly those concepts of competence that are originated by different social stakeholders and have influence on the processes of initial and continuing vocational training in Lithuania. All different scientific concepts of competence proposed by different scholars and circulating only in the scientific discourse have not been considered.

The article provides useful information for the policy makers and different stakeholders looking for information on the existing variety of the concepts of competences in Lithuania.

The paper provides a discourse that integrates the various complex conceptual and contextual issues related to the concept of competence.