The paper analyzes the historical context, content, and aims of the organized anti-Semitic propaganda and legislation in the final year prior to the occupation of the Kingdom of Yugoslavia and in occupied Serbia. Both direct and indirect anti-Semitic orders and decrees have been thoroughly analyzed, while the propaganda has been gleaned from the writings of influential daily newspapers, magazines, and journals, and special events such as the Great Anti-masonic (1941) and Anti-communist exhibition (1942). An attempt has been made to show the predominant role of the German factor in both legislation and propaganda, although the responsibility of the local authorities is also discussed. The paper derives its information from research mainly done on primary historical sources such as the official decrees of the Kingdom of Yugoslavia, the German military commander in Serbia, and Milan Nedić’s Government, as well as the influential press published at the time.