Since the beginning of the 1990s, Lithuania has been undergoing significant transformations in family life and has experienced a precipitous decline in fertility. The determinants of the changes are diverse in character and are associated with socioeconomic transformations, economic difficulties faced by the post-Soviet society, inadequate social and family policies and changing value orientations and life styles. This article traces the fertility trends in Lithuania from the period and cohort perspective, providing adjusted TFR estimates that reveal the significance of the tempo effect on the recent decline in fertility. Furthermore, the main factors leading to the recently observed changes in family and fertility are identified and analysed. Finally, the characteristic features and necessary improvements of current Lithuanian family policy and its possible effects on individual behaviour and fertility trends are discussed.