The aim of study was to investigate development of perennial medicinal plant, Satureja montana L., cultivated in dry farming conditions of South Banat, Serbia, with use of black permeable mulch film. In the first two vegetations, the influence of fertilization and crop density on yields of the aboveground plant part (per plant and per m 2) and on the content of total essential oil and its major constituents was observed. Overwintering survival, after late performed first harvest, and surviving ratio by the end of the second year of vegetation were 90.1% and 86.9%, respectively. Ratio between fresh and dry biomass (2.4:1) was not affected by tested treatments. The yield per plant was affected by the treatments only in the second year. Higher crop density produced 25% higher yield, while organic fertilization variant yield was 19% higher. In both years, crop density did not show significant effect on yield per unit area, while in case of fertilization, this yield was higher in organic fertilization compared to mineral in the first and the second year, 7% and 19%, respectively. The essential oil yields ranged from 0.8% to 0.9%, with the major constituent thymol (48.3-69.4%), followed by carvacrol, pcymene and β-bisabolene. The essential oil yield did not depend on treatments, while the content of major constituents was significantly affected only by applied crop density.