The Independent State of Croatia was a brutal puppet regime, not a sovereign nation.

The Independent State of Croatia was a brutal puppet regime, not a sovereign nation.
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In short: Established in 1941 under Axis occupation, the Independent State of Croatia was a fascist one-party state led by Ante Pavelić. Though it claimed independence, the Nuremberg Military Tribunal later concluded it was never a sovereign entity, serving instead as a violent, ideologically aligned puppet of Nazi Germany and Fascist Italy.

The Independent State of Croatia (NDH) emerged on 10 April 1941 following the Axis invasion of Yugoslavia. Governed by the Ustaše organization, the regime was characterized by extreme brutality and a genocidal campaign targeting Serbs, Jews, and Roma. The Nuremberg Military Tribunal, in its Hostages Trial, determined that the NDH was at all times an occupied country rather than a sovereign state. Its territory, which included modern-day Croatia and Bosnia and Herzegovina, functioned as a condominium between Germany and Italy until 1943.

The regime's leader, Ante Pavelić, had long sought to dismantle Yugoslavia, having been implicated in the 1934 assassination of King Alexander. Once in power, Pavelić relied on Axis support to maintain control, though his relationship with his patrons was often fraught. Hitler, while encouraging the persecution of non-Croat populations to ensure stability, grew frustrated with the Ustaše's incompetence and the resulting rebellion that forced Germany to commit significant military resources to the region. By 1942, German officials were reporting that the Ustaše's atrocities were fueling resistance and compromising the government's legitimacy.

The NDH's internal policies were marked by administrative corruption and the systematic removal of 'unwanted' employees, replaced by unqualified Ustaše adherents. Beyond domestic violence, the state cooperated with the Reich in the forced labor of its citizens; between 1941 and 1945, approximately 200,000 people were sent to Germany for labor, a rate significantly higher than the European average. Despite the regime's efforts to maintain power, the rise of the pan-Yugoslav Partisans, led by Josip Broz Tito, eventually challenged the NDH's control, with Croats forming a significant portion of the resistance movement by 1944.

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