Researching the fundamental characteristics of project management practices in the public sector of the island of Korčula is highly important in today's context as it contributes to the advancement of local communities, attracting population to the island, and improving the quality of life. In Croatia, there is a lack of development in the field of project management, which is particularly pronounced in smaller local governments such as that on the island of Korcula. Although well-managed projects can bring numerous benefits, a lack of expertise in their planning, execution, and monitoring can result in inefficient use of resources and a lack of success. Therefore, the focus of this research is not only on analyzing the characteristics of project management practice on the island of Korcula but also on identifying key barriers and deficiencies that hinder effective project management in the public sector. The first part of the paper emphasizes the theoretical aspects of projects, project management, the knowledge areas of project management, and the phases of the project life cycle. The research was conducted on a sample of 22 respondents through a questionnaire, including employees in the public sector in the area of the island of Korčula. The research results reveal that the majority of participants have a high level of education and experience and are mostly in managerial positions. Challenges during project implementation were observed, including a lack of working conditions and difficulties in managing changes. The research shows an increasing presence of projects in the public sector of the island of Korčula, often of smaller scope. Respondents emphasize the high success rate of projects, and although most have extensive experience, they lack additional competencies for more effective management. Therefore, there is a need to improve working conditions and provide additional education to align the perception of the importance of projects with the real conditions for their success. Continuous education and improvement of working conditions on projects open up perspectives for expanding project work in the public sector of the island of Korčula. This not only contributes to increasing the benefits of the projects but also improves the work efficiency of the employees implementing them. Considering the growing emphasis on the role of projects in promoting the development of local communities, it is crucial to identify emerging challenges and develop concrete strategies to overcome them.