On February 18, 1993, Croatian authorities signed the Daruvar Agreement with local Serb leaders in Western Slavonia. The aim of the secret agreement was normalizing life for local populations near the frontline. However, authorities in Knin learned of this and arrested the Serb leaders responsible. In June 1993, Serbs began voting in a referendum on merging Krajina territory with Republika Srpska. Milan Martić, acting as the RSK interior minister, advocated a merger of the "two Serbian states as the first stage in the establishment of a state of all Serbs" in his April 3 letter to the Assembly of the Republika Srpska. On January 21, 1994, Martić stated that he would "speed up the process of unification and pass on the baton to all Serbian leader Slobodan Milošević" if elected president of the RSK". These intentions were countered by the United Nations Security Council (UNSC) Resolution 871 in October 1993, when the UNSC affirmed for the first time that the United Nations Protected Areas, i.e. the RSK held areas, were an integral part of the Republic of Croatia.
During 1992 and 1993, an estimated 225,000 Croats, as well as refugees from Bosnia and Herzegovina and Serbia, settled in Croatia. Croatian volunteers and some conscripted soldiers participated in the war in Bosnia and Herzegovina. In September 1992, Croatia had accepted 335,985 refugees from Bosnia and Herzegovina, most of whom were Bosniak civilians (excluding men of drafting age). The large number of refugees significantly strained the Croatian economy and infrastructure. The American Ambassador to Croatia, Peter Galbraith, tried to put the number of Muslim refugees in Croatia into a proper perspective in an interview on 8 November 1993. He said the situation would be the equivalent of the United States taking in 30,000,000 refugees.
As of 2016, the Croatian government listed 1,993 missing persons from the war, of whom 1093 were Croats (428 soldiers and 665 civilians), while the remaining 900 were Serbs (5 soldiers and 895 civilians). As of 2009, there were more than 52,000 persons in Croatia registered as disabled due to their participation in the war. This figure includes not only those disabled physically due to wounds or injuries sustained, but also persons whose health deteriorated due to their involvement in the war, including diagnoses of chronic diseases such as cardiovascular disease, as well as posttraumatic stress disorder (PTSD). In 2010, the number of war-related PTSD-diagnosed persons was 32,000.
In total, the war caused 500,000 refugees and displaced persons. Around 196,000 to 247,000 (in 1993) Croats and other non-Serbs were displaced during the war from or around the RSK. The Organization for Security and Co-operation in Europe (OSCE) said that 221,000 were displaced in 2006, of which 218,000 had returned. Up to 300,000 Croats were displaced, according to other sources. The majority were displaced during the initial fighting and during the JNA offensi