This master thesis presents the results of a survey on satisfaction of life in Gospić and Lički Osik. The research focuses on satisfaction with the quality of urban life among residents of previously mentioned areas Gospić and Lički Osik which are the only urban areas in the city of Gospić. The city of Gospić is the smallest county center in the Republic of Croatia, it is faced with trends of a decrease in population and economic weakening. Therefore, the survey was carried out on 483 respondents from the age of 20 to 79 with a place of residence in either Gospić or Lički Osik. The survey tried to determine the level of satisfaction in five domains: housing, environment, infrastructure and traffic, services and social connections. The results of the survey showed that the respondents find the highest form of satisfaction in the housing and environment domain while the lowest level of satisfaction is found in the service and content domain. Furthermore, a higher form of dissatisfaction is found among the residents of Lički Osik, residents of younger age and those of poorer social status. The research showcased the existence of marginalization among the residents of Lički Osik and the younger population. Therefore, it is necessary to create strategies and policies that are going to be focused on younger social groups, likewise, it is crucial to form strategies for stronger involvement of Lički Osik in the development processes of the city of Gospić. The creation and implementation of these strategies would improve the quality of life in Gospić, and thus reduce existing negative trends.