After ten years on Hajduk's coaching staff as an assistant and goalkeeper coach, in March 1993 Katalinić was appointed as a manager. Under his helm, two months later, Hajduk won Croatian Cup after two legged final against great rival Dinamo Zagreb. The following season Hajduk were champions of Croatia and in 1994–95 first Croatian double crown was rounded with Champions League quarterfinal clash with eventual winners Ajax. Following season Hajduk failed to qualify for the Champions League after losing to Panathinaikos. Two months later Katalinić resigned after being knocked out of the Croatian Cup. In 1996–97 came his first managerial job abroad when he signed a one-year contract with Hapoel Haifa. Return to Croatia followed where he took over minnows Zadar leading them to championship play-offs. Second spell with Hajduk followed but no trophies were won.