This paper presents an analysis of the characteristics of family farming in Europe and Central Asia and discusses its role in overcoming some of the major development challenges in this region. This paper addresses three basic questions. First, what does the family farm mean for the actors involved in it? Secondly, why, how and under what conditions is family farming important to society as a whole? And thirdly, will family farming be relevant, attractive and important in the future of Europe and Central Asia? The paper also presents some key recommendations and discusses the enabling policy environment that should be built and deployed to overcome the challenges family farmers face.