From 1941 to 1945, Zagvozd was part of the Independent State of Croatia. In the settlements of Zagvozd and Rastovac, at least 190 lost their lives over the course of the war.
Zagvozd was the site of a 1945 massacre of 18 friars and civilians. Their remains were discovered in 2005. DNA analysis in Split revealed the identities of three of the victims as Franciscan friars from the town of Široki Brijeg. In 2007, the 15 unidentified bodies were buried in Zagvozd while the identified friars were buried in their native Široki Brijeg.