When deciding on the topic of this paper it came to me that someone from the Balkansshould try to understand and write about his/her regional problems rather than to discussglobal ones. Smaller nations should think more about how to fit in the new world rather thandiscuss global and distant issues. I understand that the idea I have chosen to write about isnot modest to discuss in fifteen pages. However, I have tried to confine myself to writing aboutrelations between Serbs and Croats only. By writing about relations between two biggest andclosest nations in former Yugoslavia I have tried to explain that small differences can evenhave more striking consequences than big ones. That was the case in former Yugoslavia. Twonations, whose major difference is that ones are Orthodox and others Catholic Christians,could not have found joint interest. The ideas described here, as I believe, express majorityopinion in Serbia. Understanding historic background is the only way to better understandevents in the joint state of Southern Slavs. I started historic journey from the mid nineteencentury since that was the period when the idea on joint South Slavic state ensued. I also triedto explain social and political circumstances in the Balkans prior to the First World War, sinceYugoslavia arose from its outcome. I wrote about period between the wars, occurrences fromthe Second World War, Socialist Yugoslavia and Balkan wars in 1990s.While writing about this subject I tried to be fully aware of our national, and overallSlavic mentality of crying over the spilt milk. It was not without reason that one of the mostprominent Serbian writers, Borislav Pekic, wrote: “When a Serb falls into a deep hole he askshimself how come that the hole was on his way? How could have happened that he had falleninto it? On the other hand, when a Westerner falls into a hole he first looks around to find if there is any way out, then does everything to get out. If it is clear that he cannot leave thehole, he starts making his home out of it.” Although I wrote about history of the Balkans, I did itin order to acquire and provide more background information on the topic. The intent of thispaper was not to think about how we got into the hole but to figure out how to get out of it.