This chapter reviews the evolution of higher education in Chile from 2004 to present, as well as the proposals in recent reform packages. The OECD recommends in this chapter that Chile: 1) identify a system-level vision and strategy for higher education; 2) establish an effective infrastructure to steer the higher education system; 3) strengthen equity in access to high-quality higher education, and; 4) strengthen the quality and relevance of higher education. Universities and other higher education institutions are positioned at the nexus of knowledge creation, education, innovation and economic growth. These institutions are therefore essential to building and maintaining the human and cultural capital that Chile needs to transform its economy by moving away from dependence on primary goods towards a diversified system that fosters social inclusion (Boulton and Lucas, 2008).