Rural space in Croatia occupies 91.6% of its surface and is characterized by a large geographical and social diversity, which is a huge potential for rural tourism. Rural tourism in Croatia, as a special form of tourism in rural areas, which with their natural and cultural resources are base for the development of quality tourism offer, began to develop in recent times and it has less importance than the maritime tourism. Rural tourism in Croatia is an important factor in the activation and sustainable development of rural areas, which helps to preserve local identity, tradition and customs, protecting environment, strengthening the indigenous, traditional and organic production, and supporting the development of rural areas based on sustainable development. In Croatia, rural tourism is in its initial phase and presents a great potential which has not been given enough attention so far. The importance of rural tourism is primarily reflected in the very important interaction between agricultural production, production of traditional products, conservation of cultivated landscape, presentation of traditions and cultural specificities, traditional gastronomy and tourist services, and the use of existing resources. Rural tourism development is based on sustainable development. It is visible in the revitalization of the existing traditional buildings and heritage, which are being given a new purpose – a tourist one. Rural tourism, in a completely different way, tries to unite, restore and organize territory. There is no need to build new capacity, but rural tourism development is faced with the challenge how to use existing structures in the best and most effective way. This paper provides an overview of the situation of rural tourism in Croatia, problems in creating a rural-tourism offer and steps for future development. Regarding the position of Croatia in Europe, paper will describe and analyze the situation of rural tourism in the neighborhood states (in France, Austria, Italy and Slovenia) which are the examples of countries with the highest level of development of rural tourism in Europe, with emphasizing of European experiences and good practices that could be implemented in further successful development of rural tourism in Croatia.