The topic of the final paper is the analysis of the development of railway traffic in the Republic of Croatia. The paper deals with the very beginning and development of railways and railway traffic in the world, as well as the beginning of railway traffic first in Croatia and later in the Republic of Croatia itself. The Republic of Croatia, with its unusual territorial shape and geographical position, is located in a very favorable place within Europe, which has great potential in railway transport, as shown by the important corridors that pass through the Republic of Croatia. This final paper highlights the current state of Croatian Railways. The railway system of the Republic of Croatia is based on the principle of separation of railway infrastructure and railway (suprastructure) transport. The railway infrastructure stretches along the network of railways in the Republic of Croatia in the length of slightly more than 2604 km. Railway transport capacity in the Republic of Croatia is too large and inadequate for the current needs of transport, as it is partially obsolete, damaged and neglected due to lack of investment. Accession to the European Union in 2013 opened the possibility of balanced development of transport infrastructure, especially for the construction and modernization of railway infrastructure with the support of the Structural Funds and the EU Cohesion Fund. The strategy for the development of railway transport in the Republic of Croatia from 2017 to 2030 has been processed. The advantages of rail transport over other transport branches (road, air and sea) will be explained.