The tricolor without a red star in the centre was inherited from the flag of its direct predecessor state, the Socialist Federal Republic of Yugoslavia (1943–1992).

Following the fall of communism and breakup of Yugoslavia, the remaining republics of Serbia and Montenegro reconstituted the country on 27 April 1992 as the Federal Republic of Yugoslavia and adopted a new flag by removing the socialist red star from the old one.

When it was unveiled, Socialist Party of Serbia councilors in Tutin refused to work on the municipal council on the grounds that "the flag of another state is displayed in the offices of the Town Hall".

[10] In 2003, when FR Yugoslavia was renamed as Serbia and Montenegro, there were disputes over any new symbols to be used for the state union.

It was alleged that the new Constitutional Charter of Serbia and Montenegro prohibited the use of the old Yugoslav symbols until a law on them was brought before the Parliament of Serbia and Montenegro and one was required to be brought within sixty days of the new Parliament sitting.

[16][17] In 2006, shortly after the country's dissolution, the Serbia and Montenegro football team entered the 2006 FIFA World Cup for one last time using the flag they had qualified under.