The return of more settled conditions in central Europe was marked by renewed economic growth, and Prague’s population grew from 40,000 in 1705 to more than 80,000 by 1771. In 1784 the Old Town, the New Town, the Malá Strana, and the Hradčany complex were administratively united into one city. The merchants and the mostly German, Spanish, and Italian nobility who were active in and around Prague in this period had an enormous effect on both architecture and cultural life. Outstanding architects created magnificent palaces and gardens, and churches in the Prague version of the Baroque style sprang up throughout the city.

The onset of the Industrial Revolution had major effects in Prague. The first suburb (Karlín) was established in 1817, and in the next 20 years many factories sprang up, often in association with the coal mines and ironworks at Kladno and Králův Dvůr, not far away. The population exceeded 100,000 by 1837, and expansion continued after the city received its first railway eight years later. The rise of a working class and of strong nationalistic sentiments had a profound effect on the city; students, artisans, and workers took to the barricades against the ruling Austrians when revolution flared briefly in 1848. Within 20 years Czechs had won a majority on the City Council, and Czech cultural life was experiencing a renascence centred on Prague. The Neoclassical building of the National Museum and the National Theatre are only two examples of the building that took place in this period. By the 1890s the first electric streetcars (trams) were running in the city, urban services were being reorganized, and a replica of the Eiffel Tower overlooked the city from Petřín Hill.

In 1918 Prague became the capital of the newly independent Czechoslovak republic. By 1930 the population had reached 850,000. The city suffered a setback following the surrender of large parts of Bohemia and Moravia to Germany under the Munich Agreement of 1938. The citizens rose in revolt on May 5, 1945, and held the city until the Red Army arrived four days later. After World War II economic reconstruction began, careful planning was necessary to restore and preserve the historic monuments of the city centre. From the 1970s there was an increasing emphasis on the development of new satellite communities. The city continued to grow, although most of its population growth was attributable to annexation. The so-called Prague Spring of 1968, a short-lived excursion into liberalized social and governmental controls attempted by the government of Alexander Dubček, was terminated by Soviet military action in August of that year.

In November 1989, Prague’s Wenceslas Square became the cradle of the movement that swiftly ended four decades of communist rule in Czechoslovakia. An officially sanctioned march in the city, commemorating the death of a student at the hands of Nazis in 1939, resulted in police violence and public disorder. Indignation at the current regime kindled further unrest, and in the second half of November students, young intellectuals, and later older people, totaling some half a million, demonstrated in the streets of the capital. Subsequent pressure led to the resignation of the entire Communist Party leadership and the formation of a coalition government headed by noncommunists. When Czechoslovakia itself was dissolved into its constituent republics on January 1, 1993, Prague maintained its prominent international status as capital of the Czech Republic.

Throughout the 1990s Prague underwent a cultural, economic, and political transformation. The stock market opened for the first time since World War II, the city was modernized, and it became a major tourist destination. Capping Prague’s rebirth, it was designated a European City of Culture in 2000.

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