This paper explores the significance and impact of EU funds on the economic development of the Republic of Croatia during the period from 2014 to 2023. EU funds represent a crucial source of financing for various sectors such as infrastructure, innovation, education, and entrepreneurship, which have contributed to the growth of gross domestic product (GDP), the reduction of unemployment, and the increase in investments. By utilizing these funds, Croatia has managed to achieve economic benefits that have led to positive changes in different sectors of society. The main objectives of this paper include a quantitative analysis of the impact of withdrawn EU funds on Croatia's economic growth, as well as the identification of key factors that contribute to the effectiveness of the implementation of projects financed by these funds. The conducted regression analysis showed that the funds withdrawn from the EU significantly contributed to GDP growth, a decrease in unemployment rates, and stimulated investments. The research results suggest that every additional billion euros of withdrawn funds contributes to GDP growth by around 1.84 billion euros, reduces unemployment by 0.72%, and increases investments by 0.21 billion euros. In addition to quantitative data, the paper also addresses the qualitative aspects of fund utilization, including the challenges Croatia faces in the process of fund withdrawal and project implementation. Issues such as administrative obstacles, complex procedures, and a lack of capacity in local and regional bodies have been highlighted as key challenges that need improvement to increase fund utilization. The results of the paper can serve as a basis for future strategies and recommendations aimed at improving the fund withdrawal and management process, thereby enhancing their efficiency and contribution to long-term economic growth. Through the effective use of EU funds, Croatia has the opportunity to build a more resilient and competitive economy, capable of responding to contemporary challenges such as climate change, digitalization, and global economic instability.