This paper explores and analyses the Hungarian institutional system for the creation and the transfer of knowledge in the field of agriculture and rural development. We consider the constitution and operation of the Agricultural Knowledge System (AKS) in Hungary, focussing on the formally organised aspects, and suggest that both the structure and content of the knowledge needed in the sector have significantly changed during the past decades. These changes, especially in relation to the sustainability of agriculture, pose significant challenges to traditional AKS institutions, which often have failed to change in line with the new requirements. Based on a literature review, interviews and a national stakeholder workshop, we offer an analysis of Hungarian AKS institutions, their co-ordination, co-operation and communication with each other and with Hungarian rurality, and of the arising issues and problems concerning the creation and the flow of knowledge needed for sustainable agriculture. We also briefly explore characteristics of emerging bottom-up structures, called LINSAS (learning and innovation networks for sustainable agriculture), and explore the significance of the findings in this article for the study of AKS in Europe. This article is based on preliminary results of the SOLINSA research project, supported by the European Union’s Seventh Framework Programme.