By elaborating the concrete provisions of Yugoslav Law on criminal procedure about the circumstantial evidence and court practice concerning this issue, the author starts from the principle of 'material' truth establishment and facts that get to the truth. The author calls attention to the possibility that circumstantial evidence could be used as the legally irrelevant fact to prove the decisive fact indirectly. In certain circumstances courts use circumstantial evidence more and more as the source of evidence, finding the support in some Law provisions. Concrete examples from the court practice concerning circumstantial evidences utilization as the sources of evidence provide that application justifiability of this criminal-legal institute in concrete cases can be evaluated.