Micro-credentials are increasingly prominent in discussions around education, training and labour market policy. Policymakers, educators and trainers across the world envision micro-credentials to be an innovation with a multitude of potential uses and benefits – a sort of all-purpose solution for the problems confronting education, training and labour market systems – and some have begun to integrate them into existing practice and policy frameworks. However, evidence on the value and impact of micro-credentials remains scarce, limiting commitment on the part of stakeholders. This paper examines what is known about both the potential and limitations of micro-credentials with respect to enhancing learners’ labour market participation and outcomes, widening pathways from upper secondary to higher education, improving completion of higher education, and promoting social inclusion among disadvantaged learners.