Taj način je najbolji.

Because način is a masculine singular noun, and the demonstrative taj has to agree with it in gender, number, and case.

• taj = masculine singular
• ta = feminine singular
• to = neuter singular

So:

• taj način = that way / that method
• ta knjiga = that book
• to mesto = that place

In this sentence, način is in the nominative singular, so taj is also nominative singular masculine.

Način usually means way, method, or manner.

In Taj način je najbolji, it means something like:

• That way is the best
• That method is the best
• That approach is the best

The exact English translation depends on context, but the Serbian word način covers all of those ideas.

Je is the 3rd person singular form of the verb biti (to be) in the present tense.

So:

• ja sam = I am
• ti si = you are
• on/ona/ono je = he/she/it is

Since taj način is singular, Serbian uses je:

• Taj način je najbolji = That way is the best

Unlike in some Serbian sentences where the verb can be omitted, here je is normally present because this is a standard equational sentence: X is Y.

These are three different degrees of the adjective good:

• dobar = good
• bolji = better
• najbolji = best

So:

• Taj način je dobar = That way is good.
• Taj način je bolji = That way is better.
• Taj način je najbolji = That way is the best.

The prefix naj- forms the superlative, just like -est or most in English.

Because najbolji agrees with način, which is masculine singular nominative.

Adjectives in Serbian must agree with the noun they describe, or with the subject after to be in this kind of sentence.

Here are some examples:

• Taj način je najbolji. — masculine singular
• Ta metoda je najbolja. — feminine singular
• To rešenje je najbolje. — neuter singular

So the ending changes depending on the noun.

It is an adjective, specifically the superlative form of dobar.

The pattern is:

• dobar = good
• bolji = better
• najbolji = best

This is slightly irregular, because bolji is not built directly from dobar in a simple predictable way. So it is worth memorizing this set as a group.

This is the most neutral and natural word order for saying That way is the best.

The structure is:

• Taj način = subject
• je = is
• najbolji = predicate adjective

Serbian word order is more flexible than English, so other orders are possible for emphasis, such as:

• Najbolji je taj način.
• Taj način najbolji je. (much less neutral)

But Taj način je najbolji is the standard choice and the best one for learners to start with.

Yes, that is possible, but it changes the meaning slightly.

• Taj način je najbolji = That way/method is the best
• Način je najbolji = The way/method is the best or A way/method is the best, depending on context

Using taj points to a specific method already known in the conversation, similar to that in English.

Often yes, but not always exactly.

In this sentence, taj corresponds well to English that. It refers to something identifiable or already mentioned.

However, Serbian demonstratives are more tightly connected to grammatical agreement. Taj changes form depending on the noun:

• taj način — that way/method
• ta metoda — that method
• to rešenje — that solution

So unlike English that, Serbian demonstratives must match the noun grammatically.

A simple learner-friendly pronunciation guide is:

tuy NA-cheen yeh NYE-bol-yee

A few details:

• taj sounds roughly like tie in English
• način: č sounds like ch in church
• je sounds like yeh
• nj in najbolji is like the ny sound in canyon
• lj in najbolji is a soft ly-like sound, though many learners first approximate it with ly

The stress is usually on the first syllable of način and najbolji.

Not normally. Taj usually means that, not this.

If you wanted this way, you would usually say:

• Ovaj način je najbolji. — This way/method is the best.

So:

• ovaj = this
• taj = that

In real speech, the exact feeling can depend on context, but as a learner you should treat taj as that.

Yes. Način is a normal countable noun.

• singular: način = way / method
• plural: načini = ways / methods

Examples:

• Taj način je najbolji. — That method is the best.
• Ti načini su najbolji. — Those methods are the best.

In the plural, both the demonstrative and the adjective change to match the noun.

Yes, absolutely. It is a natural and correct sentence.

It could be used in many contexts, for example when discussing:

• how to solve a problem
• how to learn something
• how to cook something
• how to organize work

For example:

• Možemo to uraditi na više načina, ali taj način je najbolji.
• We can do it in several ways, but that way is the best.

So this is a very practical sentence pattern to learn.