This paper examines regional economic imbalances in Croatia and compares them with other countries in Central and Eastern Europe. The transition processes, while crucial for modernization and economic growth, have contributed to the increase in regional disparities within these countries. In Croatia, more developed urban areas such as Zagreb, Split, and Rijeka have leveraged their infrastructural and geographical advantages, while rural and peripheral regions, such as Slavonia and Lika, remain economically marginalized. These regions face deindustrialization, demographic decline, and a reduction in living standards. The role of the European Union, particularly through the Cohesion Policy and structural funds, has helped reduce these imbalances. However, the analysis shows that the results are not evenly distributed, depending on the regions' capacity to absorb funds and implement projects. More developed regions are more successful in attracting and implementing projects, while less developed regions lag behind due to administrative and institutional weaknesses. The paper highlights that in order to reduce regional disparities, it is necessary to strengthen the capacity of local institutions, invest in infrastructure, encourage innovation, and ensure better absorption of EU funds. Examples from other countries, such as Poland and the Czech Republic, demonstrate how decentralization, strengthening regional capacities, and focusing on innovation can lead to a more successful reduction of regional disparities. It is concluded that the current approaches to regional development require further improvements to ensure a more balanced development. Future policies should focus on strengthening the capacities of less developed regions, addressing demographic challenges, and promoting local initiatives, which will enable long-term and sustainable development in all parts of Croatia.