Every country today strives to attract more foreign direct investments. Foreign direct investment plays a very important role in stimulating economic growth but also in developing the country. Of the many positive effects that foreign direct investments have on the host country, it is certainly important to emphasize the impact on the domestic economy, the increase of employment and investment. In order to attract foreign direct investment as much as possible, many countries are setting up investment attracting agencies, so in the Republic of Croatia has been established the Agency for Investments and Competitiveness. In order for the Republic of Croatia to stimulate as much foreign direct investment as possible, it introduces fiscal, financial and other forms of incentives for foreign direct investment. However, it is certainly necessary to take account of the sustainability of development when taking direct foreign investment. Most countries have strictly defined rules and regulations on sustainable development that can be influenced by eign direct investment. In this regard, it is necessary to take care of the preservation of natural resources, the greater efficiency in the allocation of resources, the introduction of new technologies and the need to give up all the activities that in the future can endanger the generations. To make progress on the competitiveness scale, the Republic of Croatia should turn to long-term efforts to build fundamental social values and the development of human resources that are capable of contributing to increased productivity and the long-term sustainable growth. The Republic of Croatia has a long tradition of international cooperation in the field of environmental protection and sustainable development as well as good examples of sustainable direct foreign investment, however, given the potential and the problems it has, it will need to invest much more effort in the future and take more concrete measures to attract sustainable foreign direct investments.