This study examined the role of national cultural institutes of EU Member States in supporting European cultural diplomacy. It analysed the structure, mission, finances, and activities of these institutes, assessing their current effectiveness and potential for fostering European values abroad. The study provided recommendations on how cultural institutes could enhance their role in the development and implementation of a European strategy for external cultural relations. The research combined desk research, interviews, fact sheets, SWOT analyses, and surveys to map and evaluate 29 cultural institutes, with in-depth case studies of eight institutes to provide actionable insights for EU policymakers.