The subject of this paper is the issuance of national bonds in the Republic of Croatia. This paper analyzes the issuance of national bonds in Croatia, examining its advantages, disadvantages, and impact on the development of the Croatian capital market. The issuance of national bonds is an important instrument through which the state raises the necessary funds for financing budget deficits and various public projects. National bond issuance allows the state to stabilize the financial system by reducing the need for foreign borrowing, encourages domestic savings and investments, and contributes to the development and liquidity of the domestic financial market. Moreover, the state retains control over borrowing conditions, allowing for better adjustment to economic needs. Issuing large amounts of national bonds can lead to an increase in public debt and dependency on domestic investors, which can limit flexibility in international markets. Additionally, increased borrowing can put pressure on fiscal policy and cause inflationary pressures if the funds raised are not used efficiently. For Croatian citizens, national bonds represent a safe and stable form of investment, promoting savings and financial literacy, and enabling direct contributions to the economy. By purchasing bonds, citizens can achieve predictable income and enhance their financial security. However, national bonds may have low liquidity, making it difficult to quickly withdraw funds in emergency situations. Furthermore, fixed interest rates can be unfavorable during periods of high inflation, and the risk of state bankruptcy, although rare, always exists. The possibilities for new issuances of national bonds depend on macroeconomic conditions, fiscal policy, investment climate, and the regulatory framework. Low inflation, favorable interest rates, and high investor confidence create favorable conditions for new issuances. Successful public debt management and sustainable fiscal policy are also crucial for increasing the attractiveness of new bonds.