Historical urban heritage represents not only the accumulation of the wealth of civilization but also a foundation for identity of urban communities. However, a town is still a living system, the existence of which is supported by its constant development, change and growth. Creating a new urban quality in a historical environment without prejudice to the existing harmony is a complex and challenging task. This article looks into and summarizes knowledge accumulated from the final projects of BA students of the Department of Urban Design, Faculty of Architecture, Vilnius Gediminas Technical University (FA, VGTU). It reviews methodology, tasks, solution argumentation and methods of designing new urban quality in a historical environment in BA students’ graduation projects.