The Schengen area is the largest area of free travel in the world and one of the greatest achievements of the European integration. The essence of the Schengen area is the lack of internal borders control and in such area, the cross-border threats that affect the internal security are common interest of all Member States. In recent years, the largest number of refugees and migrants has arrived in the European Union since WWII and the Union and its member states were not ready enough to react effectively. The main purpose of this research was to discover whether the Schengen system is postulate for internal and external security and a guarantee for the security of the European citizens. Challenges associated with the migration crisis in 2015., as well as the increasing concerns for security, endangered the functionality of the Schengen system and inspired a new period of EU activity. This research shows that the urgent response resulted in joint and continuous work at the EU level. In the last three years the progress has been made based on the increased efforts in the management of the EU’s external borders. The continuation of the solidarity and responsibility of the EU member states is crucial for dealing with all forms of existing and future threats and challenges that could jeopardize the functioning of the Schengen area to maintain the existing level of security.