The paper discusses the main results from the first ranking system of Bulgarian higher education institutions. It adopts two perspectives: 1) from the point of view of higher education – What are the basic achievements, problems and perspectives of Bulgarian higher education as seen through the prism of the ranking system? 2) from the point of view of the ranking system – What are the strengths and weaknesses of the ranking systems and how it can be further developed and improved? The paper argues that ranking systems of higher education institutions are an inevitable result of massification, commercialization and growing competition in higher education. The analysis highlights the critical arguments against the first ranking system of Bulgarian higher education institutions and suggests some possibilities for its future development. On the basis of the results from the ranking system the paper outlines the main problems of the Bulgarian higher education. It discusses massification of Bulgarian higher education in the light of recent trends in other European countries and European educational policies. It is argued that Bulgarian higher education is in need of elaboration of strategic vision and new normative framework. It also needs changes, such as: establishment of new governance model and new model of financing of higher education; strengthening the relationship between teaching and research; development of the capacity of higher education institutions for innovative and strategic thinking; diversifying the system of higher education; development of strategic partnerships between higher education institutions and between them and non-academic partner.