The paper aims to prove the importance of the cultural policy as the key determinant of strategic cultural activities and cultural development, based on the case study of Osijek. The culture and cultural heritage have been investigated by many authors, resulting in different definition approaches. Definitions of culture and cultural heritage depend on the aspect of analysis but there are different approaches to cultural policy, too. In its core, cultural policy involves taking certain actions, activities and steps within the community, in order to meet cultural needs with the optimal use of all available resources at a given moment. The paper focuses on the models of cultural policy - the liberal model, the parastatal model, the bureaucratic enlightment model, the national emancipatory model and the regional / linguistic / ethnic model of cultural policy. For the purpose of cultural policy designation, authors have appreciated the basic principles of cultural policy, primarily the principle of continuity or traceability, the principle of self determination and the principle of selectivity. In order to test starting research assumptions, relevant scientific literature regarding culture, cultural policy and cultural heritage has been explored. Additionally, strategic documents, especially Strategy of Cultural Development of the City of Osijek 2014-2020 have been analysed in order to learn the management principles of the cultural development of the City of Osijek, the fundamental values of Osijek's cultural policy as well as its strategic goals and priorities in the field of culture. Finally, empirical part of the research relied on the in-depth interview conducted in the City of Osijek, Department of Culture. The study findings suggest that Osijek's cultural policy shapes strategic activities which foster sustainable use of the City's cultural heritage and promote the development of contemporary cultural creativity.