In this paper, we will consider the process of decentralization in Croatia and Europe through some of its significant characteristics. Systematic decentralization in Croatia began with amendments to the Constitution and laws from 2000 and 2001, respectively, in certain administrative areas, and continued with the adoption of the acquis communautaire of modern Europe. In this light, we will deal with its historical development, modern characteristics and fundamental components. We will also analyze Croatian local and regional self-government, both in the national and European context, and their scope, specifics, trends, personnel capacities and other features. Decentralization in large European countries, the Baltic, Central European and Balkan countries and their large cities actually forms a general framework on which decentralization in Croatia is based, and for this reason we will analyze it in detail.