The main topis of this graduation thesis is state and development potential of turism on the island of Mljet. Mljet is one of south Dalmatian islands, about 37 km long and about 3 km wide. The whole island is one municipaly which belongs 19 settlements, some of which are situated on the coast, and some in the inner park of island. Mljet is known for it's natural heritage like forests of oak and alepian pine, caves, bays, and lakes that are situated in the National Park Mljet. Due to preserved forests and vegetation, western part of Mljet was proclaimed National Park in 1960. During the process of writing this thesis, lot of scientific literature and relevant sources were analyzed. Based on literature and sources were analyzed natural and social resources of tourisms, as well as basic indicators of tourism such as acommodation capacities and numbers of tourists. In chapter the selective forms of tourisms also were analyzed some of the scientific literature. Certain forms of tourisms currently are devoloping on the island while certain of them have potential development. Statistical dates were used for analysing important tourist indicator such as the number of arrivals, the number of tourists, the tourist traffic towards the arrival organization and the data related to the countries taht tourists come from. The survey was conducted over the local population and the date confirms the hypothesis that were set at the beginning of this thesis. Mljet as tourist destination attracts lot of people bacause it's natural heritage and year round the tourism causing development of island. The natural heritage is what makes Mljet an ideal tourist oasis.