Through history, the most influential countries of the world had their power based on military or economic strength, but in the contemporary world of new media, globalization and advanced democracies, the focus has shifted to human capital that allows smaller states to become more prosperous and independent. Diplomacy is an activity with the goal of effective management of reputation and creating a desired image of a state, within the realization of its foreign policy goals on international stage. In the transition from traditional to contemporary and achieving the national targets, as well as with the acquisition of power and affection, the human factor becomes increasingly important - interpersonal communication and relationships which are built through personal contact in an informal setting. Exchange of students and academic education, defined as a form of public diplomacy, strive to establish cooperation between educational institutions around the world, exchange of ideas, cultural mediation and the pronounced tendency of individuals to become citizens of the world. For this reason, the student population is a key channel for transmitting messages and achieving the goals of modern public diplomacy. The purpose of this paper is to explore, by in-depth interviews research methodology, whether student exchanges can be considered as an effective tool for establishing a positive image and promoting the state during a student stay at the international Erasmus + academic exchange. In addition to the analysis and interpretation of the results to address the initial research question, the author will link the subject with Croatian circumstances, and conclude with a few guidelines for more efficient management of public diplomacy in Croatian higher education.