This paper analyzes the concept of regionalization in the context of the Republic of Croatia, with an emphasis on economic, political and administrative aspects of territorial division. Regionalization is seen as a key process that can improve the efficiency of public administration, stimulate economic development and enable better use of EU funds. The paper examines the existing system of local and regional self-government, highlighting the problem of centralized management, which makes it difficult to implement development strategies. Special emphasis was placed on the advantages of regionalization, including greater autonomy of local units, better distribution of financial resources and more even development of Croatia. In conclusion, the paper highlights the need for a comprehensive reform of the territorial organization, which would enable greater economic, administrative and political capacities of the regions, which would create prerequisites for more efficient public administration and more competitive regional economies within the European Union.