During World War II, the town was occupied by Axis troops and was included into the Pavelić's Independent State of Croatia (NDH). The fascist Ustashe regime committed the Genocide of the Serbs and the Holocaust. From July to September 1941, some 15,000 Serbs were massacred along with some Jews and Roma victims at the Garavice, an extermination location near Bihać. The town was the capital of a short-lived territory, the Bihać Republic, for two months in late 1942 and early 1943, until it was recaptured by German forces. Bihać returned to Bosnian territory on March 28, 1945.