This BA thesis, in the first place, deals with culture and intercultural communication. My work consists of three major parts. In the first part, I firstly define the term culture and cultural typology by Geert Hofstede. I also compare Croatia and Australia on Hofstede’s model. Furthermore, intercultural communication and its forms are explained, as well as verbal and non-verbal communication. The second part of my thesis deals with major issues in intercultural communication, such as language barriers, stereotypes and prejudices, racism, discrimination and ethnocentrism. Next important theme discussed in the second part is intercultural communication competence. Also, I provide some suggestions for improvement of those skills. Moreover, culture shock is a common problem people encounter when traveling or moving abroad, so it is explained in short. Finally, in the third part I focus on interethnic communication in the United States. Firstly, I explain what ethnicity is because that is crucial for understanding of this chapter. The next theme is differences in language use in the USA because, although the primary language that is used for every legislation, regulation and pronouncement is English, there is no official language in the United States. Since there are many ethnic groups in the USA, there are a lot of differences that lead to prejudices and stereotypes, so I list a couple of examples of accent hallucination.