The Republic of Croatia, as a full member of the European Union, is currently participating in the energy transition regarding the process of decarbonizing the economy by a transformation of the energy sector in which renewable energy sources are replacing fossil fuels. In this process, biomass as a renewable energy source plays an important role considering many positive environmental, economic and social aspects of using biomass as an energy source. In line with European targets, Croatia has achieved the required 20 percent share of production from renewable sources, but the share of biomass energy production is still not satisfactory. The most commonly used source of biomass is solid biomass, especially pellets whose producers in Croatia are export oriented. In spite of this, Croatia still depends on biomass imports, as well as the European Union. Improving the production and consumption of biomass energy requires synergy and joint action by all stakeholders in the energy sector and decision makers need to take appropriate measures to create the conditions for the development of the biomass market and deal with the barriers faced by businesses and investors. Despite the growing number of plants producing electricity and heat from biomass, as well as the number of combined heat and power (CHP) plants, the potential for using biomass remains high. This paper analyzes the current position and importance of biomass in the Croatian energy transition through the research of the Croatian biomass market and the position of biomass in national energy policies. The conducted research outlines concrete examples and measures for encouraging the use of biomass as an energy source in Croatia and provides suggestions for possible further development of biomass utilization to promote energy transition.