The Croatian Community of Herzeg-Bosnia, formed as an autonomous entity during the early stages of the Bosnian War, underwent a significant transformation in August 1993, becoming the Croatian Republic of Herzeg-Bosnia. This change represented a response to the political and military struggles faced by the Croatian population amid the broader Yugoslav dissolution. Following the disintegration of Yugoslavia, ethnic tensions escalated, particularly in Bosnia and Herzegovina, where Croats, Serbs, and Bosniaks vied for political power and territorial control.

The new republic aimed to establish a more structured governance, thus empowering the Croat community. Its declaration was influenced by regional leaders, including Mate Boban, who sought to legitimize their territorial claims and enhance administrative capabilities. This institutionalization was marked by the establishment of a government and military organization that would not only manage local affairs but also coordinate with neighboring areas inhabited predominantly by Croats.

Simultaneously, the move contributed to the fragmentation within Bosnia and Herzegovina, aggravating the ongoing conflict among different ethnic groups and fueling the narrative of secessionist movements. The introduction of the Croatian Republic of Herzeg-Bosnia aimed to reflect the aspirations of Croats for autonomy in a war-torn environment, emphasizing national identity and self-determination amidst challenging socio-political circumstances. However, it also reiterated the patterns of division prevalent during the war, underscoring the complex dynamics of ethnic identities in the region.