In the 1700s, Vienna became a Baroque city. The most significant architects of this period were Johann von Erlach and Johann von Hildebrandt. Fabulous, opulent palaces sprung up in the suburban areas, the most notable of which are Modena Palace, Schwarzenberg Palace and Liechtenstein Palace. Throughout the late 17th and early 18th Centuries, Vienna suffered from a plague, but afterwards enjoyed a stable population growth, reaching 200,000 inhabitants by 1790. Its growth was attributed to the industrialisation and construction of factories, with the first factory established in Leopoldstadt, the city's 2nd District separated from the centre of Vienna by the Danube Canal.

During the Napoleonic Wars, Vienna was invaded twice. For the first time was in 1805, when three French marshals crossed the Danube and told the Austrian commander that the war was over. In the meantime, French troops entered the city unperturbed. The second time, was in the Battle of Aspern-Essling, fought between Austrians under the command of Archduke Charles and the French under Napoleon, who suffered a crushing defeat. The Congress of Vienna, which redrew political boundaries throughout the continent, was held in the city between 1814 and 1815.

In the mid-19th Century, the Ringstrasse, a circular road surrounding the Innere Stadt district of Vienna, was built. Many monumental buildings were constructed along this historical street, which is now a major tourist attraction of the Austrian capital.

Vienna’s population peaked at over 2 million in 1910. In the early 20th Century, the city became the centre of Art Nouveau thanks to the Vienna Secession (an Austrian artistic movement), which comprised 19 Vienna artists from the Association of Austrian Artists. The city suffered little damage in World War I, and became a separate state in 1921. The Parliament dissolved in 1933, and a civil war broke out the following year. Foreign minister Engelbert Dollfuss outlawed the Communist Party, Nazi Party, Social Democratic Party, and eventually only the right-wing Patriotic Front was allowed. Dollfuss established an authoritarian regime, called Austrofascism, and usurped the power.

In 1938, Nazi Germany annexed Austria. World War II bombings were disastrous for Vienna; many of its historical buildings and monuments were destroyed and only some were rebuilt after the war. When Austria entered its Second Republic period after the war, the political parties were recreated. In 1945, an Austrian politician Karl Renner announced the re-establishment of a democratic Austria. At this time however, Asustria was divided into four seperate zones and occupied by the Allies: The United States, France, the UK, and Soviet Union. Eventually in 1955, Austria regained its freedom with the Austrian State Treaty.