This paper tried to determine the basic principles, respectively the principles of an independent judiciary, on which the state of law and modern judiciary should stand on. The starting point for derivation of legal-theoretical principles are international and European regulations and standards, as well as domestic - based on the Constitution, laws and bylaws. Analysis of the various principles and standards of judicial independence, and the overview of latest achievements in this field through comparative law, as well as the national legislation of this field - define the principles and tenets of the modern and independent judiciary, by using various methods of social sciences: comparative-legal, historical, normative and dogmatic methods. The aim is establishment of the courts and judges' integrity, high professional level of judicial personnel, combating corruptive actions and discretional decisions, as well as the high authority of the judicial branch as a whole. Decentralization, mobility, limitation of mandate, independence of the judicial budget, independence from the executive power, as well as the system of continuing education are proposals for directions of the Serbian and democratic justice development. It can be concluded that there is a need for comprehensive reform of the judicial system in Serbia - primarily in terms of the system.