The United Arab Republic, which represents the embodiment of the long-standing political orientation of Egyptian President Gamal Abdel Nasser - Arab nationalism, was a state formation that saw the light of day in 1958, with the union of Egypt and Syria, and disintegrated with the secession of Syria in 1961. Given the strong partnership between Yugoslavia and Egypt or the United Arab Republic during this period, the article provides an insight into the last year of the existence of the United Arab Republic (UAR),through the prism of Yugoslav foreign policy. The subject of the discussion is thus primarily a presentation of the internal political developments of UAR, from the July measures with the introduction of a series of reforms in the light of the centralization of the state and large-scale nationalization, to the discussion of the circumstances that led to its disintegration. Considering the extensive level of cooperation between two states, Yugoslav foreign policy did not only thoroughly observe the developments in the UAR, but also participated in them indirectly or directly. In addition to assessments of internal political events and Yugoslav political interventions, the paper also offers an insight into the economic cooperation of Yugoslavia with the UAR, with a greater emphasis on the challenges that Yugoslav companies faced in this market.