In 1902, the new Modern Art Gallery at Ca’ Pesaro was opened. However, in stark contrast, the old bell tower on St Marc's square, which has been immortalised on pictures and postcards, collapsed. The tower was rebuilt in 1912, the year the famous novella by Thomas Mann, 'Death in Venice', was published.

Venice suffered minor damage during World War I. In 1926, Porto Marghera industrial park was annexed to the city, which comprised oil refineries, aluminum smelting and other manufacturing facilities, and gradually the lagoon started giving in to landfill. In 1932, the first Venice Film Festival was held, which became an annual event since 1935. During World War II, the Germans and Allied powers did little harm to the city's historical district. However, the war’s effect ceased any artistic activity in the city. The Art Exhibition was suspended and reopened only in 1948.

In 1960, part of Venice’s lagoon landfill was transformed into the Marco Polo Airport, and one-fourth of the lagoon was filled for industry use. As channels for big ships were being dug as well, Venice's buffer against tides weakened. So when the flood of 1966 hit, the city’s streets and houses were some two meters under water. Some of the water level marks remain today on many churches and palaces.

Venice's population dropped to 70,000 in 1995, with an average age of 50. Two-thirds of the population in the greater area of Venice moved to more secure homes on the mainland.

Also, another disaster struck in 1996 with a fire in Teatro la Fenice. Reconstruction of the theatre was finally completed in 2004. The city today attracts thousands of tourists, especially in the winter for the Venice Carnival, which has been held since 1268 and features its infamous Venetian masks.