The analysis is concerned with the current state of the Schengen Area, its legal and institutional framework, as well as the impact of COVID-19 on its functioning. The paper demonstrates that COVID-19 has forced EU Member States to adopt unprecedented measures on mobility restriction. The author distinguishes three groups of measures in response to the COVID-19 pandemic: the temporary reintroduction of border controls at internal borders; a ban on crossing internal borders; a ban on entering into the EU for third-country nationals. All measures were taken on a national level; EU institutions do not have enough competence in this sphere, which is why they have mostly played a coordinating role. Moreover, the pandemic increases the deficit of solidarity between EU Member States. The author concludes that the COVID-19 pandemic demonstrates that the EU needs more powers to react in such a situation. Thus, the EU has to create additional legal instruments for the realization of a common policy on crises affecting the Schengen Area.