The defective product liability is one of several mutually complementary and separate systems of liability for damage in existing Croatian and European law. Its constitutive elements and specifics were influenced by American and European jurisprudence of the 20th century, which sought to ensure effective legal protection of the injured party in cases where their procedural legal position was significantly threatened. The beginning of the system in question took place in the USA through the restatement, i.e. a non-binding source of law, in the creation of which prominent university professors of law, top judges and legal practitioners participated. Under the influence of the American model, the European Community adopted Directive 85/374/EEC, which established the European model of the system in question with the aim of maximum harmonization. It regulates key concepts such as product malfunction, prerequisites for the existence of liability, exemption from liability, deadlines for exercising rights and the relationship to other types of liability for damage. Over time, all EU member states (as well as some non-European states) have implemented the Directive in their national legislation, with greater or lesser success. The Republic of Croatia did so with minor (mainly linguistic) deviations, which were corrected by subsequent amendments to the Croatian Obligations Act. Since the adoption of the Directive until today, the practice of the Court of the EU has determined in many important cases the necessary clarifications and interpretations of the Directive in accordance with its goals and purpose. The rapid progress of technology (the advent of artificial intelligence) and the development of the production of highly sophisticated products have influenced the adoption of a proposal for the revision of the Directive by the European Commission at the end of 2022. It seeks to cover software, digital manufacturing files and digital services. It points to the complexity of modern supply chains and the need to include every relevant business entity, as well as to take into account possible non-property damage and damage to the data of the injured party. Also, the introduction of new presumptions of defectiveness and a causal link between the damage and the defective product, aims to make the position of the injured party even easier. Such an approach is clearly in line with the modern way of life.