In June 1946, the government of the Socialist Federal Republic of Yugoslavia created the State Committee of Cinematography, in order to replace the provisional Film Enterprise of the SFRY.

[3] Until 2000, the studio participated in the creation of 400 documentaries, 200 feature films and 120 co-productions with foreign companies; its pictures won more than 200 awards in various festivals.

[4][5] After the Breakup of Yugoslavia, the studio was partially privatized and 51% of its shares were sold to a company called Jugoexport, while the rest were retained by Avala Film's management.

The studio is facing financial troubles, and was threatened with liquidation after Jugoexport was declared bankrupt.

The company's real estate, film rights, costumes, props and studios were scheduled to be sold-off in spring 2013.