This study examines the emerging relationship between microcredentials and qualification systems. Information gathered through an online survey among European VET providers, national authorities, employee and employer organisations was complemented by in-depth country case studies and interviews with Cedefop's ReferNet network. Questions of whether and how microcredentials should be related to established qualification systems are at an early stage of consideration in most countries; the focus is on better defining and standardising their role within national qualifications systems. Existing trends towards modularisation and the recognition of prior learning provide potential avenues for realising the benefits of microcredentials in terms of flexibility and responsiveness, while also ensuring their quality for learners and employers. There is still significant debate over how to deal with microcredentials, and how to avoid potential negative effects, such as encouraging a shift away from holistic education towards short-duration learning based around reduced skill sets. Microcredentials are a complex phenomenon, particularly with regard to their relationship to qualifications. In recent years, there has been an acceleration in the availability and use of microcredentials in the labour market, raising questions about their relationship to VET and to qualification systems. The proliferation of microcredentials of different types across various sectors, occupations, education sectors and levels and countries, along with variations between countries in the nature of qualification systems -- which are undergoing change -- make this a complex landscape to research and analyse. To date there has been a lack of data at EU level informing decision-making in this area. This report aims to be a first step towards filling some key gaps in the knowledge around these topics, addressing three main research questions.