Through the implementation of cohesion policy, the European Union seeks to balance the economic and social development of the member states. The instruments that make it happen are called ESI funds. In the programming period 2014-2020, there are 4 ESI funds: the European Regional Development Fund, the European Social Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund. Since its accession to the European Union, the Republic of Croatia has been a beneficiary of these funds. For the same programming period, it has adopted 4 Operational programs on which the utilization of ESI funds is based. Numerous EU projects have been implemented in the Republic of Croatia, most of which belong to the fields of innovation, energy efficiency, human resources, tourism, transport, health and environmental protection. The island communities of the Republic of Croatia face a number of problems, of which it is important to highlight unsatisfactory infrastructure, poor transport links and lack of human resources. In order for the Croatian islands to reach their full potential in the form of agriculture, fisheries and maritime affairs, olive growing and tourism, these problems need to be addressed. The first step in overcoming these problems is the Islands Project, which has been implemented since 2007 by the Ministry of Regional Development and European Funds of the Republic of Croatia. There are numerous positive world examples of the use of EU funds for the development of island communities, which Croatia should follow. In addition, it is important to systematically implement the concept of sustainable tourism development, together with the development of specific forms of tourism in order to meet the needs of tourists, the local population, as well as the destination and its environment.