The aim of this paper is to present, in an unbiased way, a synthesis of events that foresaw the collapse of Socialist Federal Republic of Yugoslavia during the ‘80s of the past century. It also deals with the causes of war conflicts that spread over the territory of then present (first half of the ‘90s) Yugoslavian state. After the death of Josip Broz Tito, social, business and economy problems became evident, all causing the first political disagreements to appear. Memorandum SANU and Slobodan Milošević’s rise in popularity prompted public expression of Serbian national stances, as well as the rebirth of long lost, but never forgotten, plans on the establishment of the Great Serbia. Yugoslavian crisis had reached its peak at an extraordinary 14th Congress whose events effected the final collapse of Union of Communists of Yugoslavia. Re-empowerment and promotion of Croatian national consciousness did not happen until the campaign of the first half of the 1990s, when the first free multi-party elections were held. In Franjo Tuđman, Croats found a person who would lead them to independence, while the Serbs, on the other hand, saw Slobodan Milošević as their protector and the one who could guarantee their perseverance and well-being. The following years were marked by numerous regional rebellions which were an introduction to bloody war conflicts that culminated during the ‘90s. Denouement of these events proved once more how fragile and inviolable the idea of common and harmonious lives of all Southern Slavs was. Problems raised by national, linguistic, religious and economic reasons, caused primarily by historic circumstances, defined the scope of illusion in terms of creating and maintaining the common state.