As a first step, this paper will analyze the theoretical concept of a referendum with its advantages and disadvantages. Afterwards, the essential historical facts that are important for the development of the referendum institute itself will be outlined. Following this, examples will be highlighted of constitutional and legal regulation of the participation of peoples in the direct decision-making process through referendums in the Swiss Confederation and the Republic of Slovenia and the positive examples of these countries that might be adopted in the Republic of Croatia will be emphasized. Moreover, the organization of the constitutional referendum institute of the citizens' initiative in the Republic of Croatia will be analyzed. This paper will further describe all previous citizen referendum initiatives and the course of the citizens' referendum initiative from 2021, as well as the ruling of the Constitutional Court of the Republic of Croatia on the constitutionality and legality of referendum issues of this initiative. Additionally, the right of the people to exercise their power through referendums as a legitimate form of exercising the power of citizens will be pointed out. The necessity and importance of citizens' right to a referendum on their own initiative will be explained as a tool of remedial parliamentary power within a modern democratic society and the political-legal community, and suggestions will be made to strengthen citizens' direct decision-making through referendums in the Republic of Croatia.