This paper explores the concept of distribution network planning in Croatia from both theoretical and practical point of view. First, the types of distribution system planning are presented. Then the technical criteria for distribution network planning in Croatia are elaborated, according to the Croatian Grid Code and the standard practice of Croatia’s Distribution System Operator. The focus of this paper is to go through the basic differences between planning active and passive distribution networks in Croatia with special attention paid to voltage and power fluctuations caused by distributed generation units. Distribution network configurations that are used in Croatia are also displayed, especially in the context of redundancy and contingency analysis. The availability and type of input data for distribution network planning is thoroughly discussed. In addition, the paper addresses the challenges associated with the elimination of the 35 kV networks and the transition from 10 to 20 kV voltage level in Croatia. Finally, some relatively new but not yet exploited concepts are overviewed, like demand response and electric vehicles along with the future development of smart grids in Croatia.