Informal settlements come in many forms and there are different expressions to describe them – illegal settlement or squatter settlement is some examples. Definitions of informal settlements emphasize lack of ownership or non-compliance with the authorities’ regulations. However they are tolerated to some degree by the authorities and are unlikely to be evicted or tested in court, which gives a sense of tenure security but no actual rights. This report aims to create a better understanding for the issue “informal settlements” from the perspective of spatial planning. “Informal settlements” is an issue that can be discussed from a numerous of different angles, such as failure of planning, economy and the state role in poverty reduction strategies. The research question is formulated with the intention of fulfilling the aim and goal with this report - How does Kosovo deal with informal settlements and why is there need for actions? The characteristics and function of informal settlements vary depending on where it is located in the country and world. For a greater understanding of the phenomenon history is important, because every place has its special story to how and why informal settlement has developed. In Kosovo the informal settlements has developed overtime, during wars and changes of governance. Weakness in governance has also contributed to the situation, which can be explained by poor economy. Kosovo has been struggling with week governance for decades which has resulted in: ineffective planning, unenforceable regulation and demanding registration procedures. Informal settlements and illegal buildings are wide spread. Although in 2005 Kosovo signed the Vienna Declaration, which obliges them to act on informal settlements – securing a sustainable development and the human rights. Informal settlement is an issue that needs to be dealt with for many reasons such as clarifying ownership and getting the areas included in the city’s development, but also to create security of tenure for the people living in these settlements. How to approach the issues concerning informal settlements vary and is depending on the conditions of the settlements – there is no one-fit-all solution. The approaches can be legalization, regularization, upgrading or relocation. However, to get in order with the issue a stable and powerful government is needed, since economical and political strength is essential.