[1] All 141 seats in the Seimas were up for election; 70 based on proportional party lists and 71 in single member constituencies.

The Homeland Union benefited from dissatisfaction with the ruling Democratic Labour Party of Lithuania, which had failed to reignite the economy and was plagued by financial scandals.

In his decree on 9 April 1996, the President of Lithuania Algirdas Brazauskas set the date of the elections to the Seimas for 20 October.

The main contestants in the elections were the ruling Democratic Labour Party of Lithuania (LDDP) and the Homeland Union - Lithuanian Conservatives.

The LDDP, led by Česlovas Juršėnas, had evolved from the Communist Party of Lithuania and won the 1992 election to the Seimas by a significant margin.

Financial scandals, including one involving former Prime Minister Adolfas Šleževičius, also played a major role.

[4] All major parties generally agreed on foreign policy goals of affiliation with NATO and European institutions.

Two members of the Centre Union of Lithuania, Algis Čaplikas and Imantas Lazdinis, joined the Government, but as individuals and not delegates of their party.

[4] The newly formed coalition had supermajority in the parliament, what allowed it to amend the Constitution and overturn presidential vetoes.