This research examines Montenegro's creative and cultural sector industries. It identifies issues and develops conclusions to improve the quality of higher education programs in Montenegro. The first part of the research consists of an analysis of CCS industry policies and strategic development documents and an overview of the Montenegrin market and its demands. In the remaining part of the study, a survey was conducted to evaluate the present condition of Montenegro's creative and cultural higher education institutions through systematically organized questionnaire given to students, professionals, and academic staff. The systemic issues confronting Montenegro's CCS industry have been identified. The initial issue is that there cannot be a recognized single approach to cultural and creative industries. They do not represent a single economic sector but a combination of individual sectors of various initiatives and cultural activities. However, despite efforts to improve statistics on the cultural and creative sectors, there should be a systematic way to fully understand the cultural and creative industries and their economic contribution. Therefore, CCS should be recognized as a single sector and non-compliant with a standardized and strategic framework, which should help with the absence of intersectoral cooperation. The analysis indicates that Montenegro has a high potential for growth in the creative sector and that HEIs focus on research and innovation. They undertake various research projects and collaborate with domestic and international partners to contribute to cultural and scientific advancements and knowledge creation. However, in addition to the evident potential, the respondents are unsatisfied with their education and the skills they acquire to be qualified and competitive in the labor market. The research results show that the educational system needs to be sufficiently equipped to meet the needs of global educational and professional curricula and that new technologies and perspectives should be implemented to improve the CCS HEI. Also, there was an evident need to incorporate digital transformation into education to support active learning approaches and use cutting-edge digital teaching resources. By addressing these needs and implementing the necessary actions, the research concludes that Montenegro should strengthen its CCS, enhance innovation capacity, and promote digital transformation in CCS, ultimately contributing to its growth and development.