Sarajevo ( Serb-Croatian pronunciation: [sǎrajeʋo] It is the capital and the largest city in Bosnia and Herzegovina , with an estimated population of 390,000. In the Sarajevo metropolitan area , including Sarajevo, Eastern Sarajevo and surrounding areas and municipalities, it is home to six hundred and eighty-eight thousand residents. Moreover, it is also the capital of the entity of the Federation of Bosnia and Herzegovina , the capital of Republika Srpska entity, and the center of the Sarajevo canton . Located in the Sarajevo Valley, the largest area in Bosnia , it is surrounded by the Dinaric Alps and located along the Miljaca River in the heart of Southeastern Europe and the Balkans .Sarajevo is a double footprint of the Austrian and Ottoman empires that have succeeded them.