This article assesses the evolution of educational mismatches in Portugal over the last two decades. There has been a consistent reduction in undereducation, as younger and more educated generations replace the older ones in the labour market. Higher undereducation in Portugal vis-à-vis European Union countries is currently mostly a problem of older employees. Overeducation remains contained even in recent years: the figures for Portugal stand below those for the majority of the European countries. Furthermore, there has been a large increase in the number of college graduates during this period, most of whom have been able to find highly-skilled occupations.