In addition to analysing the constitutional and normative framework of local self-government in Bosnia and Herzegovina, the paper aims to establish normative and other shortcomings of the existing system of local self-government. It also offers proposals for improving its efficiency and quality, bringing it in line with the best existing European practices. The paper presents and critically assesses the status of local self-government in the three constitutional units of Bosnia and Herzegovina, namely the Federation of Bosnia and Herzegovina, the Srpska Republic, and the Brčko District.