This final paper will define the concept of state service, state servants and the concept of conflict of interest in the state service. Due to the importance of managing conflict of interest, there are a number of legislation to define rights, duty and obligations of state servants to performing state jobs. Some for legislation are Law on state servants as a most important legislation, Code of ethics for state servants, Labor law and Law of prevention off conflict of interest. Most important goal is to prevent conflict of interest in the state service in order to maintain public confidence in the work of state service. Achieving this goal requires a quality managing conflict of interest and mechanisms to prevent it. There are analyzes, measures, guidelines and strategies in the fight against conflict of interest. All in order that the interests of the individual do net prevail and endanger the public interest. The paper is the most focused on legislation, principles of conduct of state servants and management policies and methods aimed at combating conflicts of interest. There are some possible examples of conflicts of interest of state servants in order to get a clearer picture of the problem and difficult to identify it. In recent years, in the Republic of Croatia, increasing emphasis has been placed on the importance of combating conflict of interest in the state service, in order to avoid corruption as a final phase of conflicts of interest. If an state servant succumbs to a conflict of interest, the same is considered a serious breach of state duty. State Servants Tribunal and Higher State Servants Tribunal decides of conflicts of interest as well as violation of the provisions of the Code of Ethics for state servants. An increasing number of sanctions have been imposed for breaches of state duty as well as for conflicts of interest. Thus, it can be emphasized that the Republic of Croatia is struggling in the fight against conflicts of interest and as a result in a few years, the Republic of Croatia could be among the countries with low levels of conflict of interest and corruption as the final stage of conflict of interest.