The main goal of this graduate paper is to investigate the financing of rural development in the Republic of Croatia. The main purpose of this paper is to show the importance of financial instruments and measures of the Rural Development Program, which have a great impact on the development of rural areas on the territory of the Republic of Croatia. Rural development is the concept that implies integral, multisectoral and sustainable development of rural areas. The concept of rurality is connected with the dimensions of village, agriculture and environment. Rural development belongs to the second pillar of the Common Agricultural Policy and its most important goals are to increase the competitiveness of agriculture, sustainable management of natural resources and the balanced development of rural areas. The Common Agricultural Policy sets out mechanisms and rules to regulate the production, sale and placement of agricultural products throughout the European Union. Within the Rural Development Program 2014-2020 for the Republic of Croatia, there are eighteen measures aimed at improving living and working conditions in rural areas and increasing the competitiveness of agriculture. In terms of financing rural development, it can be said that rural development is financed through the European Strucutral and Investment Funds, which include: European Regional Development Fund, European Social Fund, Cohesion Fund, European Maritime and Fisheries Fund and European Agricultural Fund for Rural Development. Rural development is funded through the European Agricultural Fund for Rural Development. In the Republic of Croatia, the financing of the Rural Development Program is implemented through financial instruments, and they are as follows: micro loans for rural development, small loans for rural development, guarantees for rural development and investment loans for rural development. The Slavonia, Baranja and Srijem project is one example of a good project funded by European Union's funds.