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With the attainment of the self-accrediting university status in May 2004, HKIEd decided to realign its organisational structure by merging the four Schools into two Faculties from September 2005:
(1) Faculty of Languages, Arts and Sciences, and
(2) Faculty of Professional and Early Childhood Education.

Major academic and research developments were to be coordinated at the Institute level with implementation taking place at the Faculty and Department levels.

In May 2009, the Council approved the Institute’s way forward under a new Strategic Plan 2009-12 and Beyond, with Planning for the Future, Making a Different its overriding theme. It outlined the Institute’s vision for the transformation into a University of Education, to make an impact not only in Hong Kong but also in the Asia Pacific region:

Phase I - establishment of the office of Vice President (Research and Development) in January 2008 to provide leadership in promoting a strong research culture and infrastructure within the Institute.

Phase II - academic restructuring began in August 2008, with the existing two faculties reconstituted into three: (1) Faculty of Languages, (2) Faculty of Arts and Sciences and (3) Faculty of Education Studies.

Phase III - in 2009/2010, academic restructuring targeted constituent departments, with the aim of enhancing their capacities through sharpened subject strengths within more focused disciplinary boundaries.

Between 1994 and 1998, the Hong Kong Institute of Education (HKIEd) operated a matrix academic structure consisting of "programmes” and “departments”, and they ran in parallel with one another to enable inputs from various departments to the same programme.

On the “programmes” side of the matrix, there were three Divisions responsible for the operation and monitoring of academic programmes; whereas the “departments” provide the focal point for the development of subject expertise, research and other scholarly activities.

From 1994 to 1997, HKIEd operated from a Head Office in Causeway Bay and seven campuses, offering mainly Certificate Courses in Education and In-service Training Courses.

In line with the upgrading of HKIEd to a university-level institution and the development of Bachelor and Postgraduate programmes, a working group was set up by the Academic Board to recommend a new structure after wide consultation with all staff.

On 5 June 1998, the Academic Board's recommendation to create four Schools and twelve Departments was endorsed by the Council for commencement in the 1998/99 academic year. Under this new structure, the four Schools were responsible for organising academic programmes, whereas the twelve Departments were reorganised within the four Schools and they focused on extending their expertise in the different programmes and courses organised by their respective School.

In order to match HKIEd’s development to a tertiary level institution, the matrix was replaced by a new academic structure of four Schools and within which the departments and centres were housed, in the 1998/99 academic year.

The four Boards of Studies served important functions, such as coordinating the work of cognate departments in areas such as resources, manpower planning and reorganisation, and assisting them in developing subject expertise and research, as well as other activities of common interest.

Each Board of Studies met several times in the first half of 1996, and regular meetings were expected to become the norm over time.