This analytical piece examines how Portugal’s political system is being reshaped by institutional change, party realignment and shifts in governance practices, and what those shifts mean for policy-making and the distribution of power. It argues that Portugal confronts 21st‑century crises while many state institutions and rules remain rooted in a 20th‑century model, producing a structural mismatch that constrains policy responsiveness. The article surveys changes in party competition (including fragmentation and moves to the right), evolving coalition dynamics, pressures for legal and administrative reform, and the potential effects on decentralisation, judicial and electoral arrangements and representation (including for expatriate communities). It outlines reform priorities and trade-offs as the system reconfigures to better manage contemporary economic, social and geopolitical challenges.