Territorial matters increasingly gain importance in the European Union (EU). The EU considers territory as a variable in specification and implementation of policies. So, the territorial dimension has been added to various policy areas, and governance has also been addressed on a territorial basis. In this framework, as a relatively new concept, territorial governance has entered into the EU's agenda to improve the efficiency of governing processes and ensure territorial development. This study elaborates on the fundamentals of territorial governance. Its main purpose is to discuss the institutional effect of territorial governance on the geographical levels in the EU.