The success of Open Distance Learning (ODL) institutions has contributed to increased credibility and acceptance of distance learning systems as an effective mode of teaching and learning. This genre of education has made significant contributions to human resource development. At least 40 per cent of incremental students'population atpost-secondary level, of the total of about 0.5million students per year, prefer to study through distance mode. They opt for different types and levels of degree/diploma programmes that are offered by the ODL institutions. The factors, which contribute to the growth and sustainability of distance education system, are identified in this paper with a view to designing appropriate strategies to effectively face the challenge ofpromoting human resource development through ODL systems. In view of this, an attempt has been made to describe the best practices in open and distance education, especially with regard to (a) policy initiatives; (b) design and development of courses; (c) methods and strategies of instruction, (d) media for learning; (e) student support services and (f) management and financing of institutions. Some of the major challenges that are confronted in quality assurance of programmes are discussed in this write up.