Lying on the northern slopes of the Velebit at about 800 m above sea level within the Velebit Nature Park, Krasno is one of Croatia's largest mountain villages. It comprises fourteen hamlets scattered around the picturesque Krasno Valley that is flanked on all sides by high wooded cliffs and peaks.
Krasno’s geographical position and the mountain climate have resulted in a slow pace of development and limited economic activity. The chief activities include cattle raising, dairy production, forestry, lumber, agriculture (wheat and potatoes), and more recently tourism. Forestry and wood processing is a traditional industry in Krasno owing to the region’s abundant forest resources.
With the opening of the Forestry Museum (2005), the only of its kind in Croatia, and the Forester’s House, the Krasno Forestry Office has recently added tourism to its field of activities.
Above the village is the 18th century Church of the Blessed Virgin Mary of Krasno a well known place of pilgrimage. The church has a beautiful cassette ceiling with painted scenes from the life of Jesus, Mary and saints and Latin quotes dating back to 1740. On August 15, the Assumption Day, the church of Krasno attracts pilgrims from all over Croatia.