Claim: Bosnia and Herzegovina was part of the Kingdom of Yugoslavia in the interwar period.

Bosnia and Herzegovina -LRB- -LSB- ˈbɒzniə_ənd_ˌhɛərtsəɡoʊˈviːnə , _ - ˌhɜːrt - , _ - ɡə - -RSB- or -LSB- ˌhɜːrtsəˈɡɒvᵻnə -RSB- B&H ; Bosnian , Croatian , Serbian : Bosna i Hercegovina / Боснa и Херцеговина -LSB- bôsna i xěrt͡seɡoʋina -RSB- -RRB- , sometimes called Bosnia-Herzegovina -LRB- BiH -RRB- , and , in short , often known informally as Bosnia , is a country in Southeastern Europe located on the Balkan Peninsula . Sarajevo is the capital and largest city . Bordered by Croatia to the north , west , and south ; Serbia to the east ; Montenegro to the southeast ; and the Adriatic Sea to the south , with a coastline about 20 km long surrounding the city of Neum . In the central and eastern interior of the country the geography is mountainous , in the northwest it is moderately hilly , and the northeast is predominantly flatland . The inland is a geographically larger region and has a moderate continental climate , with hot summers and cold and snowy winters . The southern tip of the country has a Mediterranean climate and plain topography .   Bosnia and Herzegovina is a region that traces permanent human settlement back to the Neolithic age , during and after which it was populated by several Illyrian and Celtic civilizations . Culturally , politically , and socially , the country has a rich history , having been first settled by the Slavic peoples that populate the area today from the 6th through to the 9th centuries . In the 12th century the Banate of Bosnia was established , which evolved into the Kingdom of Bosnia in the 14th century , after which it was annexed into the Ottoman Empire , under whose rule it would remain from the mid-15th to the late 19th centuries . The Ottomans brought Islam to the region , and altered much of the cultural and social outlook of the country . This was followed by annexation into the Austro-Hungarian Monarchy , which lasted up until World War I . In the interwar period , Bosnia was part of the Kingdom of Yugoslavia and after World War II , the country was granted full republic status in the newly formed Socialist Federal Republic of Yugoslavia . Following the dissolution of Yugoslavia , the country proclaimed independence in 1992 , which was followed by the Bosnian War , lasting until late 1995 .   Today , the country maintains high literacy , life expectancy and education levels and is one of the most frequently visited countries in the region , projected to have the third highest tourism growth rate in the world between 1995 and 2020 . Bosnia and Herzegovina is regionally and internationally renowned for its natural beauty and cultural heritage inherited from six historical civilizations , its cuisine , winter sports , its eclectic and unique music , architecture and its festivals , some of which are the largest and most prominent of their kind in Southeastern Europe . The country is home to three main ethnic groups or , officially , constituent peoples , as specified in the constitution . Bosniaks are the largest group of the three , with Serbs second and Croats third . A native of Bosnia and Herzegovina , regardless of ethnicity , is identified in English as a Bosnian . The terms Herzegovinian and Bosnian are maintained as a regional rather than ethnic distinction , and the region of Herzegovina has no precisely defined borders of its own . Moreover , the country was simply called `` Bosnia '' until the Austro-Hungarian occupation at the end of the 19th century .   Bosnia and Herzegovina has a bicameral legislature and a three-member Presidency composed of a member of each major ethnic group . However , the central government 's power is highly limited , as the country is largely decentralized and comprises two autonomous entities : the Federation of Bosnia and Herzegovina and Republika Srpska , with a third region , the Brčko District , governed under local government . The Federation of Bosnia and Herzegovina is itself complex and consists of 10 cantons . The country is a potential candidate for membership to the European Union and has been a candidate for North Atlantic Treaty Organisation membership since April 2010 , when it received a Membership Action Plan at a summit in Tallinn . Additionally , the country has been a member of the Council of Europe since April 2002 and a founding member of the Mediterranean Union upon its establishment in July 2008 .