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In the middle Paleolithic period, Neandertals lived in modern Zagorje, northern Croatia. Dragutin Gorjanovic-Kramberger discovered bones and other remnants of a Neandertal, subsequently named Homo krapiniensis, on a hill near the town of Krapina.

By orders of the king in 1553 and 1578, large areas of Croatia and Slavonia adjacent to the Ottoman Empire were carved out into the Military Frontier (Vojna Krajina) and ruled directly from Vienna's military headquarters. Due to the dangerous proximity to the Ottoman armies, the area became rather deserted, so Austria encouraged the settlement of Serbs, Germans, Hungarians, Czechs, Slovaks and Rusyns/Ukrainians and other Slavs in the Military Frontier, creating an ethnic patchwork.

The President of the Republic of Croatia is the head of state and is elected by popular vote for a five-year term.

Most economic indicators remained positive in this period, except for the external debt. The Croatian National Bank had to take steps to curb further growth of indebtedness of local banks with foreign banks (commonly the same foreign banks that own the local ones). The dollar debt figure is quite adversely affected by the EUR/USD ratio — over a third of the increase in debt since 2002 is due to currency value changes.

The Hungarian king introduced a variant of the feudal system. Large fiefs were granted to individuals who would defend them against outside incursions thereby creating a system for the defence of the entire state. However, by enabling the nobility to seize more and more economic and military power, the kingdom itself lost influence to the Frankopan, Šubic, Nelipcic, Kacic, Kurjakovic, Draškovic, Babonic and other families.