Croatia qualified for the 2018 World Cup undefeated for their first five matches. Two defeats to Iceland and Turkey, as well as a draw against Finland, led to a public outcry that ousted manager Čačić. He was replaced by Zlatko Dalić, who formally qualified the team with a 2–0 win against Ukraine, and a 4–1 win with Greece, on aggregate, during a playoff round in the first leg in Zagreb. The 2017–18 squad was known as Croatia's second "golden generation", referencing their 1998 counterparts, during the side's World Cup campaign. They topped their group with a 2–0 victory over Nigeria, a 3–0 win over Argentina, and a 2–1 win with Iceland – their best-ever group stage performance.
During the knockout stage, they beat Denmark in a penalty shoot-out for the first time after goalkeeper Danijel Subašić saved three penalties, equalling the record for most penalties saved in a shoot-out. In the quarter-finals, Croatia drew 2–2 with hosts Russia, becoming the first team since 1990 to win two consecutive penalty shoot-outs. Playing England in the semi-finals, Croatia equalized to force their third consecutive extra time, matching the tournament record. Mario Mandžukić and Perišić scored as Croatia won 2–1 making them the second-smallest country by population (after Uruguay) and land mass (after the Netherlands) to reach a World Cup final. In the World Cup final they lost to France 4–2, finishing in second place and securing the silver medal. The match was controversial[d] for its refereeing. Luka Modrić became the first Croatian to win the Golden Ball. The team was welcomed by an estimated half a million people[e] at their homecoming in Zagreb. In August Croatia was ranked 4th in FIFA rankings and held that position until 4th of April 2019.
