The emblem of Karlovac was singled out from the charter of emperor Joseph II which separated the army community from Krajina territory and elevated it to the status of a free royal town in 1781. At that time that meant they were under the special king's patronage, and that they had the right to choose a city council and a Mayer.
In the upper right corner we can see crossed anchors. They symbolize boats on the Kupa River because Kupa was navigable in the past, and Karlovac was a big trade center, thanks to its navigability.. In the upper left corner there is a historical Croatian emblem with red and white fields. The town, surrounded by city walls and with two rivers in front of it, is represented in the lower part of the emblem. It is a drawing of Karlovac, which was a fortress at the time the emblem was created, and of the rivers Korana and Kupa which used to supply the ditches with water. Above the town, there is a golden Sun on the left, and a silver Moon with a human figure on the right. There is a small shield in the center of the emblem with the starting letter of the name of Joseph II (J II), the Austrian emperor who delivered the charter. Above the emblem is a golden King's crown, and on the left and right are mermaids who hold the emblem in one hand, and their golden hair in the other.

All of that is placed in a circle with a written inscription on its edges: "SIGILL.LIBER.ET REG.CIVITATIS CAROLOSTADIEN."