The purpose of the external evaluation was to review and assess the process that led to the development of Montenegro Sustainable Development Program (MSDP) - turning of Sustainable/Ecological State Strategy into MSDP, progress, cross-cluster and cross-institutional cooperation of the MSDP for years 2002 to 2005 of United Nations Development Program (UNDP) Liaison Office (LO) in Montenegro. Additional objective of the evaluation was to review and assess the projects' key results implemented in the frame of the MSDP, and to suggest a framework of sustainable development indicators (SDI) for MSDP projects. The evaluation of the MSDP indicates that the Government's efforts in building for understanding and ownership, as well as strong commitment to the sustainable ecological state concept were supported via MSDP: a) across relevant government institutions (ministries), and b) across civil society and throughout the political spectrum. Key intervention mechanisms, such as strategy-setting and policy options; capacity building and raising awareness; and pilot innovations, were used effectively in the implementation of the MSDP. Key institutions and systems, which support sustainable development, were strengthened. 'Early-success', 'no-regrets' projects to demonstrate the economic, social, and environmental viability of sustainable development were successfully conducted. Launching a concrete "early success" pilot project promoting sustainable tourism services was very important in Northern Montenegro: local guides were trained and local rafters helped to improve the quality of their services; consequently cooperation between the national park officials, NGO representatives and local entrepreneurs was improved. All social, economic, and environmental aspects of SD were included in a mutually beneficial manner: local people were employed; cooperation between rafters and the national park was launched; self-confidence to embark on innovative projects was achieved; a