Until 1919, the settlement was called Arežin Brijeg. From 1929 to 1941, Bosansko Grahovo was part of the
Vrbas Banovina of the
Kingdom of Yugoslavia.
World War II During
World War II, from 1941 to 1945, Bosansko Grahovo was a part of the Axis puppet state the
Independent State of Croatia (NDH). Administratively, it belonged to the Grand Parish of Krbava and Psat, established on 16 June 1941. The seat of the Parish was in
Bihać. The Kotar of Bosansko Grahovo included the town of Bosansko Grahovo,
Crni Lug,
Drvar and
Trubar. On 1 January 1942, the Kotar of Bosansko Grahovo was transferred to the Grand Parish of Bribir and Sidraga. In the
Drvar uprising Grahovo was captured by the Serb rebels commanded by
Branko Bogunović. Bogunović joined the
Yugoslav Army in the Fatherland and in September 1941 he was appointed as commander of the
Chetnik Regiment "Gavrilo Princip" from Grahovo. One hundred Croat civilians were murdered by the Chetniks during the
Bosansko Grahovo massacre. When the German and Italian
Zones of Influence were revised on 24 June 1942, Grahovo fell in , administered civilly by Croatia but militarily by Italy.
Bosnian War During the
Bosnian War, the town was held by
Bosnian Serb forces. The
Croatian Army captured the city in July 1995, during
Operation Summer '95. The offensive displaced a large number of Serb refugees. After the war, the Serb civilians returned, and today they constitute the majority of the population in the
municipality. However, nowadays the population is much smaller, having declined from 9,000 to about 2,500. == Demographics ==