An attempt has been made in this study to examine the conditional instability parameters in the selected area and to determine the main ingredients responsible for initiation and evolution of supercell storm over Skopje, Macedonia on 6 August 2016. WRF model forecasts provide the basic meteorological parameters for cloud model initialization and the detail information about atmospheric instability potential as triggering factor for severe convection. The cloud model simulation has been performed with very fine spatial and temporal resolution capable to resolve the detail aspects of convection. The results utilizing this novel method suggest that, upper level lifting, moisture advection, large CAPE, near surface convergence and increased potential vortices in the selected area play substantial role in early assessment of the atmospheric status, convective instability and storm potential. In addition the directional wind shear (veering) at the near surface layer, high storm helicity index, differential heating induced by the strong local forcing environment serve as triggering factors for initiation of supercell storm with rotational updrafts-mesocyclone. The cloud model simulation with fine resolution allows more detail insight into the storm dynamics and the mechanism of generation of rotational updrafts and mesocyclone, a hook echo signature and the presence of bounded weak echo region as ingredients for supercellular structure and evolution. The overshooting top of 15 km, peak updraft speed of 40 m/s, wind gust of 35 m/s and reflectivity which exceeds 70 dBZ indicates to the occurrence of a very severe storm. A longer live cycle of storm and the intense water production, with extreme rainfall rate of 38 mm/5 min, contribute to formation of excessive torrential rainfall and local catastrophic flooding.