On 10 August 2014, Turkey will hold the first round of presidential election which are of specific importance, as its results will shape the country's both domestic politics and external relations. This paper discusses the key challenges which Turkey's next president must undertake. The domestic challenges range from revision of Constitution, Kurdish peace process and economic growth to polarization of society, freedom of judiciary, separation of powers and civil liberties. In the external relations area, the principal challenges are the worsening of country's relations with its neighbours, security threats and the stalemate of the EU integration. Several domestic and external challenges are inter-related: for instance, the freedom of judiciary, separation of powers and civil liberties affect the EU integration process; the political uncertainty relates to economic growth and foreign investments; the Kurdish peace process impacts on the external security issues; the economic factors influence the relations with the Kurdistan Regional Government and Iraq's central government; the Syrian crisis raises new challenges with regard to the Syrian refugees in Turkey. Therefore, addressing Turkey's current domestic and external challenges will be a long, puzzling and often conflicting-results process.