Hagere Selam was occupied 11 December 1936 by a column of the Italian Laghi Division which advanced south from Aleta Wendo. The Italians renamed the town Hula, in order to avoid Amharic names. Within a few years the "Guidi" described the town as an important market for coffee, hides, and cattle. Amenities included the "Vice residenza", telegraph, infirmary, restaurant, and "spacci". Of the four churches in Hagere Selam, Kidane Mihret was the principal one. The Italians started construction of a mosque at this time. The town was retaken by elements of the British 11th (African) Division on 18 May 1941.