This paper attempts to investigate the privatization of the natural monopoly, the specificity of the process itself, and to explain the main points related to the topic. Market is the place where all transactions of exchange of goods and services take place. On the one hand, there is supply or manufactures, and on the other, demand or customers. There are severl types of markets, and the main division is the imperfect and perfect competition. This paper deals with the monopoly, the privatization of the natural monopoly. Natural monopoly is one of four types of monopoly that we classify as imperfect competition. The main characteristic of a monopoly is the existence of only one bidder, which has a certain power or influence on the prices of its product, since there is no substitute. The privatization of a natural monopoly is a process that occurs when ownership changes, that is, the transformation from state to private ownership. Hrvatske šume, as a natural monopoly, have not yet met with privatization. This paper distinguishes the advantages and disadvantages of privatization of the mentioned company. The paper is conceptualized in several parts. At the outset, it introduces the topic, the content of the work, the goal and the hypothesis. In the elaboration of the paper, definitions and general information about the topic of the paper come to light. Towards the end of the paper, we come to the conclusion, the realization of the potential disadvantages, the benefits of privatization of the natural monopoly itself. This paper attempts to investigate the privatization of the natural monopoly, the specificity of the process itself, and the underlying items.