The influence of digitalization on human capital in the Republic of Croatia is the priority area of the Croatian government in order to align itself with the European Union’s Digital Decade Policy. Digitalization process impacts various aspects of economy, among other the human capital. It changes the way formal structures of skills and education are aligned and emphasizes the need for enhanced digital skills, digital knowledge and adoption of digital technologies. Croatia, as an EU Member State is committed towards reaching EU goals, recognizing the importance of digitally competitive human capital that drives economic growth and development. Integration of digital skills is essential for future demands of the digital economy. Challenges however remain in order for the population to ensure digitalization benefits and accept the negative sides and issues such as digital divide and unequal access to education, training and resources. The significance of sustainable and safe digital transformation is growing and addressing them means ensuring safe people-oriented environment. This thesis focuses on examination of the human capital digital skills and compares them with other Member States in order to get a clear and comprehensive position of Croatia. Particular emphasis is put on the level of digital skills and education since the Digital Decade Policy wants to establish a human-centered digitalized economy. It also places a focus on the impacts and determinants of digitalization, as well as the instruments, measures, challenges and perspectives of the digitalization process. In order to foster digitalized economy it is necessary to establish comprehensive framework and policy that will examine and guide the process and promote it in an effective and sustainable way.