The key idea of the work is to present and elaborate the problem of impartiality and independence of arbitrators that appears in arbitration proceedings. More and more requests are being made to disqualify arbitrators due to doubts about their impartiality and independence, which leads to the question of why this is happening in the first place. The main idea of the work was to give an answer to that question along with elaboration of all other provisions of the arbitration procedure that explain who the arbitrator is, how he is appointed, and what he must be like, and finally that the possible consequence of violating his obligations is exemption. In addition to such rules that exist in the rules of private law, the rules of public law have also been elaborated in which states appear as parties and, most often, appoint their own citizens as arbitrators. The paper tried to show that such setting will not affect the violation of the obligation of the arbitrator, i.e. if the arbitrator is a citizen of the country on which he decides, this does not mean that the procedure will not be a high quality. By appointing such an arbitrator, we achieve certain advantages, and in the end, greater satisfaction of the parties to the arbitration procedure. It was in this way that the conclusion was made that the most important thing in the arbitration procedure is the balance with which we will eventually reach a conclusion with which the parties will be safisfied, and in order to achieve this, the arbitrators do not need to be absolutely impartial and independent. Also, the paper deals with a brief overview of the arbitration proceeding in which the Republic of Croatia participated as a party, namely the arbitration proceedings between Croatia and Slovenia in an attempt to regulate mutual borders.