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This paper provides some key research findings from the Civicus Civil Society Index Project in Croatia, which was implemented from 2008 to 2010, as a part of an international comparative research project. This was the third wave of the research project, after a pilot in 2001 and the following phase from 2003 to 2005. State of civil society in this paper is analysed in four dimensions: level of organizations, values, perceived impact and environment, which are integral parts of the "Civil Society Diamond" -- one of the best known components of this project. The research findings are put in a dynamic context, compared to the previous two research phases, thus enabling tracing of particular indicators and dimensions of civil society in a developmental perspective. Dimensions of level of organizations, that is civil society infrastructure, and that of environment have obtained the greatest score in this research. Moreover, the dimension of environment shows the greatest increase in the observed time period. We can talk about development of civil society in Croatia, especially in the following aspects: sectoral cooperation and networking, new possibilities of financing, the strengthened role of civil society as a co-governor in certain policy fields, the role of civil society organizations in meeting social needs where public services are lacking. On the other hand, unsustainable employment in civil society organizations, undue interference of the State in civil society's activities, perceived corruption in civil society organizations and generally low levels of trust in society are shown to be permanent challenges for development of civil society in Croatia. The research also recognized multiple effect of the economic crisis on civil society, most notably in the decreased financing of civil society organizations and therefore weakening of human capital in organizations, and on the other hand, by leading to greater passivity of citizens. [ABSTRACT FROM AUTHOR]