The purpose of this study was to explore the evolution and development of tourism and hospitality on the island of Mljet. As the tourism develops everyday and introduces new trends, it is necessary to understand how is tourism developing on an island with all of its pros and cons in comparison with the mainland, its past, present and future perspective of tourism development. For the purpose of this study secondary research was done and tourism and hospitality were explained on 3 levels; Croatia, islands and in the end the island of Mljet. Primary research was conducted using the online survey distributed to the service providers on the island of Mljet. The questions were based on exploring past, present and future situation focusing on different factors affecting tourism and hospitality on the island such as infrastructure, tourist board, communalities, than focusing on specifics of the restaurants and the prices of the dishes. Both, studies from the secondary research as well as the results from primary research confirmed the development of tourism on the island of Mljet over the years of 21st century.