THE streets of Zagreb were awash with red and white on Monday as Croatian fans celebrated the return of their footballing heroes.

Zlatko Dalic's side exceeded all pre-tournament expectations by reaching the World Cup final for the first time, where they were defeated 4-2 by France in Sunday's final. 

Croatia topped a group containing Argentina, Iceland and Nigeria before battling trough 120 minutes in three consecutive knockout round clashes, beating Denmark and Russia on penalties before conquering England in extra time in their semi-final meeting.

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Thousands of fans gathered in the capital on Monday to celebrate their country's remarkable run, as Golden Ball winner Luka Modric and the rest of the Croatian squad partied in an open-top bus. 

France clinched their second World Cup trophy in Moscow after two first-half goals, the first an own goal by Mario Mandzukic and the second a controversial Antoine Griezmann penalty, came either side of Ivan Perisic's fine strike. 

Croatia mounted a spirited fightback after the break, but goals from Paul Pogba and Kylian Mbappe pulled the French clear despite Mandzukic grabbing a second for Dalic's side with 20 minutes remaining. 

With a population of just four million, Croatia were the smallest nation to reach the final since Uruguay in 1950.