The European Charter on Local Self-Government, adopted by the Council of Europe in 1985, has a key international role in advocating and protecting the right to local self-government of Council of Europe members. The charter is an important international document that establishes the criteria and principles of local self-government management. Ratified by the Council of Europe in 1985, the charter serves as a fundamental document in the promotion of democratic principles at the local level and independent decision-making by local authorities through the promotion of transparency, responsibility and engagement of citizens in decision-making procedures. The Charter states the basic principles of local self-government, such as autonomy, local responsibility, fiscal independence and the right to public participation in the management of public affairs. The Charter has a significant impact on the development of national legislation of Council of Europe members. The Council of Europe carries out regular monitoring and cooperation activities to monitor compliance with the provisions of the European Charter on Local Self-Government and to offer technical and advisory assistance to member states in improving their ability to respect local self-government standards. The paper focuses on the implementation of the provisions of the Charter in the national legislation of the Republic of Croatia, as well as on the presentation of the state and possible improvements in the functioning of local self-government in the Republic of Croatia.