The aim of this thesis is to present the way in which the system of higher education in the Republic of Croatia is organized and regulated by the Law on Scientific Activity and Higher Education. In addition to describing the theoretical part of higher education, a concrete example of the Polytechnic of Požega will explain how the system works in reality. In order to get acquainted with the system of higher education, it is necessary to start from the very beginnings, since all the good foundations are set in history so this thesis will first describe the historical development of higher education and the way it is now established. This thesis will describe the types of higher education institutions, their organization and activities, and other things necessary for the functioning of the system that need to be understood in order to understand the importance of higher education. It will be written about organizations without which the functioning of the system would be impossible as well as the system users without which the system would not be meaningful. Finally, in order to better understand the functioning of the higher education system, the aforementioned theoretical part will be supplemented by the example of the Polytechnic of Požega.