During World War II Bihać was also the headquarters of the general staff of the National Army of Liberation and the site of the first session of the war parliament of Yugoslavia (AVNOJ, or Anti-Fascist Council of National Liberation of Yugoslavia) in November 1942. The town remained an important meeting place throughout the war. Bihać was the scene of heavy fighting between Bosnian government forces and Serbian militias following Bosnia’s secession from Yugoslavia in 1992.
The modern economic activities of Bihać revolve around the timber and textile industries. It is a rail and market centre and has a hydroelectric plant. Pop. (2003 est.) 39,000.