The article examines the development and institutionalization of Brazil’s cultural policy in the context of international relations and soft power instruments. Special attention is paid to the creation of the Guimarães Rosa Institute as the main body res­ponsible for promoting Brazilian culture and the Portuguese language abroad. The study analyzes the historical background of its establishment, interministerial competition for control over cultural diplomacy, and the specific features of the Institute’s activities in different regions. Particular focus is placed on educational programs, the promotion of Brazilian Portuguese, and the development of the Celpe-Bras examination system in Russia. The article also addresses the issues of institutional fragmentation, inter-agency rivalry, and chronic underfunding that limit the Institute’s effectiveness. It concludes that Brazil’s contemporary cultural policy is characterized by a contradictory combination of institutional progress and persistent financial and administrative challenges.