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The paper presents the history of parlamentarism, ist institution and development in the Kingdom of Serbia, in the period from 1903 until the outbreak of I World War. The first part outlines the basic socio-economic and political conditions, the pillars and theoretical position of the concept of parlamentarism. The journey towards a parlamentary democracy was short but generally beneficial. The new Serbian state conformed to the constitutional practice of the European countries, above all, England, France and Belgium. The second part is dedicated to the activities of the basic constitutional institutions (the assembly, the crown and the government), as well as to the activities of the political parties. The enactment of the Constitution in 1903, brought about dynastic changes, which liberalized and strengthened Serbia and improved its reputation throughout the world. [ABSTRACT FROM AUTHOR]