School culture is a factor of quality of every school. In this paper, I write about the notion of school culture and its characteristics, as well as about the importance of school culture in the work of an educational institution. The aim of this diploma thesis is to explain this, not yet ingrained notion,as well as to explain its incidence in educational institutions. I will also explain and list all the factors that make school culture. In the introductory part of the paper I write generally about culture, different definitions of culture and what it means for people. It is difficult to imagine today`s life without culture because every day we can hear that someone is cultured or uncultured. To be cultured is certainly more desirable, which means to act according to certain social norms. There are various types of culture and school culture is the one that, in some way, defines usfor a lifetime. In this paper I also write about the notion of organizational culture and culture of educational institutions, as well whether some school culture is positive or negative. Of course, all participants in the educational process are expected to participate in creating a positive school culture, so that all parties involved in the process would be satisfied. Creating a positive school atmosphere and culture is definitely a challenge for teachers and principals in schools, especially in today's times when new technical skills and knowledge have taken over all the aspects of life. This requires lifelong learning of teachers and other school staff, so that all parties involved in the process would be equally satisfied with their achievements.