With free-trade negotiations with the European Union pending later this year, Australia has rallied support from Croatia for closer economic ties.
Prime Minister Malcolm Turnbull hosted Croatian President Kolinda Grabar-Kitarovic for bilateral talks in Canberra on Wednesday.
"Thank you for your support on the European free-trade agreement," Mr Turnbull told the president, adding he looked forward to discussing ways to increase further investment between the two countries.
Ms Grabar-Kitarovic said her country was keen to expand bilateral co-operation in different areas including science, technology and economic exchanges.
Last year total two-way goods and services trade between Australia and Croatia amounted to $155 million.
Mr Turnbull acknowledged the rapturous reception the president had received from the Australian-Croatian community during her visit.
There are 43,688 Croatia-born residents in Australia, and 133,264 people claiming Croatian ancestry, according to the latest census.
Ms Grabar-Kitarovic is the first Croatian president to visit Australia since 1995.
