The paper deals with regional development, with special emphasis on the Republic of Croatia. Regional development is of great importance for every EU member state. The aim of the paper is to explain strategic goals and measures aimed at achieving balanced development and competitiveness in the Republic of Croatia. The Republic of Croatia, as a member of the European Union, is divided into four regions of the Nomenclature of Territorial Units for Statistics (NUTS2) and 21 regions of NUTS3. In the Republic of Croatia, there are considerable regional inequalities and visible differences in economic and social progress between regions. Investments in mountainous and island areas are necessary to cultivate regional balance and ensure sustainable progress. The importance of promoting regional competitiveness using inherent regional resources is also presented. Increasing the competitiveness of regions can facilitate the attraction of investment, encourage innovation, and create sustainable employment opportunities. The paper also highlights strategic goals for the time frame until 2030, with the aim of achieving more effective regional development. These goals include reducing regional inequalities, encouraging growth in rural and mountainous regions, and improving infrastructure, the economy, sustainability, and the quality of life on the islands. Achieving balanced development and strengthening competitiveness is a guarantee of the prosperity of all regions in the country, which is key to the sustainable economic and social progress of the Republic of Croatia.