He then moved to Croatian powerhouse Hajduk Split, for whom he played between 1987 and 1989, alongside many Croatia national team players – Alen Bokšić, Aljoša Asanović, Igor Štimac and Robert Jarni.
His last club was Saint-Gilloise (1996–1997) from the 2nd league in Belgium where he played for half and a year, and then finished his career as a professional footballer.
During his playing career, Karačić was feared for his passing and free kick abilities and was known for having excellent technique and first touch.
In his first season as the head coach, he managed to finish on the 4th place and reached semi-final of the Croatian Cup.
He took over Osijek in 2003, his first club as a professional football player, finishing again on the 4th place in the competition and reaching the quarter-finals of the Croatian Cup.
After accepting an offer from Slaven Belupo in 2004, he managed to finish on the 6th place and qualified for the Intertoto Cup where the club played against Deportivo La Coruña.
With the club he made a historic result qualifying for the Prva HNL, although they have never played in it due to financial reasons.
When he took over Šibenik in the 2009–10 season, he managed to put down the best result in the club's history finishing on the 4th place in domestic competition and playing the final of the Croatian Cup against Hajduk Split.