This article examines the formulation and implementation of language policy and the relationship between language rights and nationality rights in Yugoslavia. The distinction between formulation and implementation is affected by the hierarchical and decentralized politico-administrative system. Policy formulated in its most general form at the federal level is implemented through formulation of more detailed policy at the republic level; republic policy is implemented through formulation of more detailed policy at the communal level. A description is given of the federal and Slovene republic constitutions and the statute of the commune of Piran. Statements in these documents determine language policy in four main areas: (1) general principles, (2) publication of official documents and official communication, (3) judicial and administrative proceedings, and (4) education. Yugoslav language policy is contrasted with Stalinist policy in the delineation of language and nationality rights. Constitutional language policy delineates the boundary within which the rights of nationalities will be protected and beyond which these rights may not extend. (Author/AMH)