This research aims to 1) study the problems and the needs of developing a teaching and learning system by using podcasts in order to develop English listening skills the diploma in vocational level (Institute of Vocational Education in the Southern Region 3) 2) propose guidelines for improving and resolving conditions as well as problems arising in the development of teaching and learning systems, using podcasts to develop English listening skills. Diploma level, Institute of Vocational Education Southern Region 3. The research tools were questionnaires and structured interviews. The sample group consisted of 370 Diploma students obtained by simple random sampling from Yamane’s (1967) random tables and 6 English teachers from 4 different educational institutes by a fragment. The statistics used in data analysis were percentage, mean, and standard deviation respectively. The research found that: 1. Problems in developing an online teaching and learning system by using podcasts to develop English listening skills the diploma in vocational level (Institute of Vocational Education in the Southern Region 3). The overall result was at a high level. 2. The need to develop a teaching and learning system by using podcasts to develop English listening skills. Diploma level (Institute of Vocational Education in the Southern Region 3). The overall result was at a high level. 3. The results of the qualitative data analysis revealed that most of the learners had low English language background, especially in listening skills, vocabulary and grammar. Most teachers do not focus on teaching listening skills and they do not have enough background in using technology to design teaching and learning. There is a lack of media related to listening skills. 4. Solutions, most teachers agree on using podcasts to develop English listening skills, which can be summarized in four steps as follows; 1) Preparation and planning of the teaching and learning system; 2) Content Management; 3) The process of teaching and learning management step consists of (1) Content Management (2) Initial Behavioral Assessment (3) Recognition, reviewing previous knowledge (4) Understanding the lesson (5) Assessment of academic performance (6) English skill development potential and 4) The learning evaluation stage leading to English competency results, according to the vocational qualification standards at the Diploma level.