This paper deals with the analysis of my own translation of the story The Capital of the World, taken from the collection The Complete Short Stories by Ernest Hemingway. During the process of translation from English into Croatian we have dealt with certain linguistic and cultural issues which may present obstacles or challenges when translated in the target language. We have presented several methods of literary translation and strategies dealing with non-equivalence in the source and the target language, as well as ambiguity in translation. The most frequently used translation strategies in this paper are translation by cultural substitution, translation by paraphrase using a related word, and translation by omission. Taking into account the setting of Hemingways short story, as well as the introduction of the third language (Spanish), the paper has proved that dealing with culture in translation is of the same importance as the content and the message being translated. By introducing the reader to the general elements of the short story and Hemingways specific style of writing, it becomes noticeable that Hemingways use of adjectives and long sentences are the aspects that have been found most challenging in translating into Croatian. We have mostly focused on the challenges in translation of physical appearance, the usage of compound adjectives (animal-related adjectives) and their function in the target language, as well as comparison, and dealing with long sentences. This paper also focuses on literal translation and exploring the methods and strategies of translation that make as few changes as possible to the authors style in the target language, in this case, Croatian.