This paper explores the phenomenon of nationalism in Croatian society, with a focus on the youth population. Relying on contemporary literature as well as on the relevant social studies conducted over the last 15 years, a few conclusions have emerged: modern Croatian society is to a certain extent characterized by the phenomenon of excessive ethnocentrism, nationalism and exclusivity, which is a very worrying social fact when it comes to young people who are considered to be the vital segment of any society. Furthermore, it has been found that the young population is insufficiently interested and insufficiently socially and politically aware, resulting in their too weak participation in society and above all in politics. Given that the confidence of young people in social and political institutions is also very low, it was concluded that there is a deficit of social capital, social cohesion and democratic potential of young people, which is an aggravating circumstance for Croatia, who wishes to become a developed democracy. Finally, it was concluded that there is a specific post-Yugoslav heritage in Croatia, which - in combination with the seriouss consequences of the Homeland War - leads to a permanent polarization of society against two opposing traditions. Young people are conveyed by war trauma and inner-family selective memories to the Homeland War and the Second World War, which causes a collective social trauma that prevents full progress of the country in a democratic sense.