Rubuta ci gaba ga wannan sakin layi - Austria-Hungary ta mamaye Bosnia da Herzegovina ya zo a 1878 a matsayin wani ɓangare na Yarjejeniyar Berlin, da kuma cikakken annexation
ya biyo baya a 1908, yana fushi da Serbs. Sarajevo ta haɓaka masana'antu ta Austria-Hungary, waɗanda suka yi amfani da birni a matsayin yankin gwaji don sababbin abubuwan kirkire-kirkire kamar hanyoyin jirgin ƙasa, waɗanda aka kafa a 1885 kafin a shigar da su a Vienna. Masu gine-gine da injiniyoyi da suke son su taimaka wajen sake gina Sarajevo a matsayin babban birnin Turai na zamani suka ruga zuwa birnin. Wutar da ta ƙone babban ɓangaren tsakiyar garin ("čaršija") ta bar ƙarin sarari don sake ginawa. A sakamakon haka, garin yana da cakuda na musamman na ragowar kasuwar garin Ottoman da gine-ginen yamma na zamani. Sarajevo kuma tana da wasu misalai na Secession- da Pseudo-Moorish styles waɗanda suka fito daga wannan lokacin.