Sustainable cultural tourism is an alternative form of tourism which significance is growing as time passes. This study is based on small historic towns, which face with consequences that mass tourism has brought to them. Cultural heritage of these towns is placed in small area. Problem of evaluation and few numbers of residents leads to disastrous future. Many residents show interest in leaving because of inadequate infrastructure and unsustainable numbers of tourist who negatively affect their lives. Sustainable cultural tourism is a solution for a greater development in future because of incentives that it encourages. Appropriate measures can lead to more satisfied residents who will then show more interest in staying rather than leaving which further accompanies development of cultural tourism. Study example is small Croatian town Trogir that has broad range of cultural heritage goods that are necessary for growth of Cultural tourism. As many other towns Trogir is also facing with wide range of challenges. Inadequate infrastructure, more and more unsatisfied residents who are leaving town center in large numbers and poor management of tourists flow in town are one of main problems. Last part of study includes some guidelines for development of sustainable cultural tourism, which can solve previously related problems. Local community is the one, which ask for greater attention and should always serve as a starting point, which complements others.