The people of Bosnia then declared independence from Yugoslavia in 1992.
But this also led to war as the Serbs living in Bosnia did not agree and thought they would be pushed out.
There was a terrible, violent war for three years.
Bosnia's capital, Sarajevo, was badly hit.
Stories were heard around the rest of the world about how cruel the Serbs were being, and further sanctions were put in place, which meant the country got even poorer.