The research area of this paper is an application of social media tools of in higher education. Social media can be described as Web 2.0 technologies and practices that are used for sharing content, opinions and experiences. The application of social networks, wikis and blogs enables improvement relations between the participants of the educational process. In this paper we present a model for application of social media in e-learning, developed in scope of Laboratory for e-business, Faculty of organizational sciences, University of Belgrade. The practical part of the paper describes the use of wikis, blogs and social networks, as a complement to the existing e- learning process, in a higher education institution. Integration of an edutainment Facebook application with Moodle learning management system is shown. The main goal of this paper is the improvement of quality of e-learning process through application of social media in higher education.