The impact that the pharmaceutical industry, as one of the most important and most profitable industries in the world, has on the economic and social aspect of the Croatian economy has prompted a deeper exploration of this topic. The aim of the paper is to describe the principles of operation and business of the pharmaceutical industry in Croatia. The motive for further study of the topic is to explain the economic consequences of doing business in this industry in Croatia. The topic will be presented initially by explaining the terms pharmacy and pharmaceutical industry, the historical description of pharmacy as a science and profession, and the development of the pharmaceutical industry worldwide. The focus is then placed on the Republic of Croatia, the beginnings of the pharmaceutical industry in Croatia, the legal frameworks in which the pharmaceutical industry operates today, and the current state of the domestic pharmaceutical market (employees, average salaries, major economic indicators, and consumption and turnover of medicines). In the next part, it will be about pharmaceutical companies in Croatia. The operations of the three largest companies in Croatia will be presented; PLIVA Ltd, Belupo JSC and JGL JSC. At the end of the paper, we will critically reflect on the data collected and draw conclusions about the paper presented.