In Croatia, as well as in many neighboring countries, neither the cattle farmers nor the general public (i.e., the consumers) are familiar with the meaning of the grass- fed cattle farming. This paper’s objective is to present what environmental and consumer-health benefits might arise from this way of cattle farming, along with the expected constrains regarding a lower productivity per animal and per the used land resources. The presented literature review has demonstrated that, when compared to the conventional TMR-fed cattle, the grass-fed feeding manner produces the cattle-derived foods with the greater consumer-related health benefits, has a potential to restore biodiversity in agricultural countryside, causes a lesser environmental pollution due to a lesser pesticide use, improves animal welfare and the beauty of a countryside landscape, decreases the farmers’ operating costs, consumes less fossil fuel per hectare of the utilized land, which is appreciated in climate policies, and has a potential to improve the cattle farmers’ resilience and independence from distant fossil fuels. The grass-fed foods are appreciated by the end-consumers who are willing to pay a price premium for such products. The projected feed and forage consumptions, along with the data on a grass-fed cattle productivity, have indicated a poorer conversion rate of feed DM to milk (1.433 vs. 0.756) and bodyweight gain (12.168 vs. 7.526) in the grass-fed cattle when compared to the TMR-fed, which implies that the grass-fed cattle would require much more land resources per product unit than the TMR-fed cattle. Further research is required to test the productivity of grass-fed cattle (per head and per hectare) in Croatian conditions, as well as to investigate the productivity of Croatian grassland resources.