Numerous potential effects of the adoption of the euro on the Croatian economy are identified and analyzed. Firstly, the following potential positive effects of the adoption of the euro on the Croatian economy are identified and analyzed: elimination of the currecny risk from the economy, reduction of the borrowing costs of domestic sectors, the reduction of the risk of the outbreak of a currency and banking crisis, lower transaction costs, stimulus to international trade and investments, participation in the allocation of the Eurosystem's monetary income and access to financial assistance mechanisms for euro area. On the other hand, the following potential negative effects of the adoption of the euro on the Croatian economy are identified and analyzed: the loss of an independent monetary policy, increase in the price level due to conversion, the risk of excessive capital inflows and accumulation of macroeconomic imbalances, one-off changeover costs, one-off costs of Croatian National Bank joining the Eurosystem and participation in providing financial assistance to other Member States. Furthermore, effects of the adoption of the euro on the Croatian economy in the first six months after the adoption are analyzed in detail. Lastly, the total cost-benefit assessment of the adoption of the euro on the Croatian economy is provided.