Kosovo’s relations with the EU have been substantially driven by the former’s contested status in the wake of its unilateral declaration of independence in 2008. The engagement of the EU has been limited, because five EU Member States do not recognize Kosovo as an independent country, which has required a high degree of ingenuity on the side of the EU in its engagement with Kosovo. Despite these political challenges, there have, however, been numerous agreements completed and Kosovo has benefitted substantially from EU enlargement funding. This funding has helped Kosovo’s ambition to join the European Union and prepare it for membership, while at the same time ensuring that Europe’s newest state can build functional and democratic institutions, and strengthen the rule of law. Looking at concrete examples of EU enlargement funded-projects, it is highlighted how EU funding has been used to strengthen institutions, prepare Kosovo for a future membership in the EU, and has aimed to support economic development.