According to estimates, some 80,000 people who gathered in Zagreb's central Ban Jelacic square erupted in screams and applause as the speaker announced each player and they climbed on stage.
Cars drove around the Ban Jelacic square blaring their horns and waving the traditional red-and-white chequered flag.
Triple Olympic Alpine skiing champion Janica Kostelic congratulated the team. "What they've accomplished is beyond words," she said.
Croatia, also world handball champions, defeated Germany 26-24 in the finals last Sunday, after winning the previous seven
games.
"We got them all, didn't we?" coach Lino Cervar told the crowd.
"Look up to our players, let us stop quarrelling and work for a better future for the sake of all our citizens," said
Cervar, who is also a deputy in the Croatian parliament.
Apart from handball, Croatia also won two silver and two bronze medals. The Adriatic city of Split -- home to six medal
winners -- is staging a spectacular welcome on Wednesday.
The Croatian National Handball Team was also received by Prime Minister Ivo Sanader who thanked the players and the expert team on the great success at the Olympics in Athens.
"You believed in yourself which is why you've accomplished such a great success and became a role model to the Croatian youth. And they need such a role model. It was my honor to watch you from the stands in the finals when you showed the entire world that you play the best handball," Sanader said and promised to increase the awards to Olympic medal winners. He said the government would help the building of the Home of Handball in Zagreb.
Also present at the reception were deputy prime ministers Jadranka Kosor and Andrija Hebrang and ministers Dragan Primorac, Ivan Suker, Bozo Biskupic, Marijan Mlinaric, Bozidar Kalmeta, as well as a member of the International Olympic Committee, Antun Vrdoljak.