Legal protection of trade secrets represents great importance because of the competitive advantages that arise from it. There has always been a big difference between Member State of the European Union in the system, the definition of dealing with trade secrets and their protection. The Directive provides legal clarity and equal laws od the game for all European companies. On June 8th, 2016, the European Union adopted Directive (EU) 2016/943 about the protection od undisclosed knowledge and experience of trade information (business secrets) from unlawful acquisition, use and disclosure and the Member State of the European Union were obliged to implement it by June 9th, 2018. Before the Directive was adopted, in the Republic of Croatia the legal protection of trade secrets was regulated by Trade Act and the Labor Law, whose were regulating only trade activities while the directive refers to all activities. In order to implement the Directive sucessfully, the Republic of Croatia had to introduce a new law which would regulate the legal protection of business secrets. This labour analyzes the existing state of legal protection of business secrets in the Croatian legal system and also evaluates the implementation of EU Directive 2016/943.