In the article the author compares the functions of a diplomatic mission in the classical and contemporary understanding. The aim is to show how the role of an Embassy has changed and what are the new tasks for an Ambassador. The methodology of this paper is based on the classical political analysis approach. The author concludes that diplomacy has transformed and in some aspects has even become deeper and more important. Therefore, one should not talk about the decline of the diplomatic job, simply in the 21st century bilateral diplomacy has to be practiced in a new style.