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Introduction. On the threshold of the era of knowledge-based society, the ongoing change of civilization types of culture, democratic processes in society, new requirements to education system and educational results dictate the need of reconsideration of the traditional, established approaches to training, education and organization of educational process and search for more effective didactic and managerial-pedagogical tools that are adequate to socio-economic and technological challenges. The aim of this publication is to analyze and discuss the possibilities and prospects of the project method in education and work with young people at the present stage. Methodology and research methods. Methodological framework of the article is based on the concepts of the activity and personally-focused education. The following types of analysis were applied: retrospective and comparative analysis of scientific sources and normative documents, including the local documents (accepted at the level of the general education organizations and the educational organizations of the higher education); qualitative analysis of experience and results of pedagogical activity. Results and scientific novelty. Origin of the project method is briefly described. The authors' periodization version of the stage of restoration of this method in the Russian education is presented. The evolution of educational project technology and introduction of its various modifications depending on the purposes, thematic application and education level are observed. The benefits and unique resource potential of the project method for work with children and youth are outlined. In particular, it is stated that project activity regulates the sphere of personal interests of young people and motivates them for active participation in social processes; supports policy of the state on preparation of social and economic personnel reserve; also, project activity is aimed at the development of the social environment of various territories (regions, cities and villages) and improvement of the standard of living of citizens. This type of the practice-focused training contributes to successful socialization, promotes learning of necessary professional competences that provide competitiveness of a future expert; develops independence, commitment, responsibility and initiative. Practical significance. The present findings can be useful for managerial staff and specialists of the educational system and youth policy. Also, the research findings can be applied to work out and organize large-scale or local educational and social projects. © 2018 Obrazovanie i Nauka. All rights reserved.