This paper will try to explain in more detail the institution of judicial settlement in the Republic of Croatia as well as in Bosnia and Herzegovina, together with its basic characteristics which are the same in both legal systems as well as with the specificities that we have in those two systems. The institute of judicial settlement is significant because the parties can settle their dispute by concluding it during the litigation process or before its initiation, with the fact that the settlement concluded in this way has the force of an executive document such as, for example, court ruling. While this institute is used much more in the world, especially in Western countries, it is still relatively little represented in the total number of resolved cases and is used mostly when resolving economic/commercial disputes. This paper is divided into two thematic units, the first of which refers to the Republic of Croatia and the second to Bosnia and Herzegovina with an emphasis on the Federation of Bosnia and Herzegovina. In the first thematic unit, emphasis is given on the general concept of judicial settlement and its fundamental characteristics that are common to both legal systems, together with some of the principles that apply to this institute. In the second thematic unit, topics such as the role of judges during court settlements are emphasized and statistics on the number of court settlements available to the population of Bosnia and Herzegovina are presented. The paper ends with a conclusion in which the subjective opinion of the author is presented regarding the subject of judicial settlement in the Republic of Croatia as well as in Bosnia and Herzegovina.