In this essay, I will use the institution and institutionalizing perspectives to explicate the significance of social capital in the educational system. It begins with a discussion of social institutions – as practices and norms, and an institutional field – a set of actors and organizations conforming to a set of practices and norms. Institutions and institutional fields sustain the stability and continuity of a social system. In order to recruit or reproduce actors and organizations for the institutional field, societies rely on institutionalizing organizations – organizations that promote the practices and norms in the institutional field. The education system is one such formal institutionalizing organization. Institutionalization can also employ informal means – networks both inside and outside the formal institutionalizing organizations. The educational system produce and reproduce resources, or capital, as social capital, to sustain the institutional field. Indeed, the educational system must acquire social capital for its own continuity and survival as well as for preparing the students for their entry into the labor market or the institutional field. Likewise, educational reform can benefit from networking from within or outside if the practices or norms need to be changed. It concludes by pointing to the need of greater attention to nurture social capital in the educational system and through networking.