Corruption is causing great damage to economic development and affects the competitiveness of the market and the stability of the financial system. Public procurement is one of the key areas where the public and private sectors are involved in financial interaction. Considering the total value of public procurement in the Republic of Croatia in GDP in recent years is about 10%, this area can be recognized as being particularly vulnerable to corruption risks. The student thesis presents the basic concepts and elements of corruption, the main features of public procurement in the Republic of Croatia, points of the public perception of corruption, its presence, experience with corruption and its impact on competition. The analysis of the legal and institutional anti-corruption framework emphasizes the issue of conflicts of interest, the emerging forms of criminal behavior of contracting entities in public procurement procedures are presented, as well as national anticorruption strategy with operational plan and anticorruption institutions. By overview of the reports and documents of the European institutions the most important recommendations and conclusions are presented with the aim of proposing the improvement of the public procurement system.