**Abstract**

The pandemic year 2020 has led to significant changes in all areas of life. Education was no exception. Due to the closure of schools and universities during the lockdown, educational systems worldwide had to be switched overnight, from face-to-face to a completely virtual education model without prior preparation. The study conducted in Montenegro, based on interviews and a survey, collected data on the basis of which it provided an insight into how the teaching staff of Montenegrin universities coped with the newly created circumstances. The aim of this primary research is to determine the challenges faced by teachers and students in the Montenegrin higher education system regarding their implementation of online teaching during the COVID-19 pandemic in 2020. It focuses on the digital competence of the teaching staff, challenges in applying digital technology, opinions regarding online assessments and students' experiences with online learning. Despite the presented challenges all teachers experienced, the research confirmed that this was a unique experience that brought new opportunities and contributed to improving the teachers' ability to use new technologies. It is to be expected that this unfortunate situation will trigger the development of various mechanisms for modernizing the way of providing knowledge in the future.

**Keywords:** higher education, online teaching, digital literacy, technological challenges, online assessments, student engagement, student experience, academic integrity, quality assurance
