The candle was lit by Israeli Ambassador Shmuel Meirom in front of about 100 members of the Municipality, their families and friends.
With Hanukkah, Jews mark the rededication of the Temple in Jerusalem. One candle is lit every evening for eight days, the duration of the festival.
The president of the Zagreb Jewish Municipality, Ognjen Kraus, said that by lighting the candle on the eve of Hanukkah, Zagreb's Jews had joined those who did the same in many European cities.
He added he was very happy that the candle was lit on the location of the former Zagreb synagogue. The synagogue was destroyed in 1942 by the Nazi-puppet Ustasha regime.