This graduation thesis covers the breakup of Yugoslavia and the creation of the Croatian state and consists of 6 chapters. The first part of the paper refers to the last period of Yugoslavia, which includes the economic and political crisis that will eventually lead to the dissolution of the confederation. The second chapter refers to the rise of Slobodan Milošević and the glorification of the Great Serbian movement, which leads to political changes within the republics. The third chapter talks about the establishment of democratic government in Croatia, the holding of the first multi-party elections and the change of the Constitution of the Republic of Croatia. The next chapter refers to the Homeland War and the areas where the Great Serbian aggression took place. Mention is also made of two military-police operations "Bljesak" and "Storm", which returned the occupied territories to the constitutional and legal order of the Republic of Croatia. The last chapter refers to the international recognition of the Republic of Croatia and the importance of recognition from world influential countries, as well as the foreign policy of Germany, which greatly contributed to recognition from EU member states.