In the 1930s, Sędziszów Małopolski became one of centers of the Central Industrial Region, and in 1937, a new factory "Zakłady Przemysłowe Sędziszów Małopolski" was opened. On September 8, 1939, the town was captured by the Wehrmacht. The Germans opened here a ghetto, in which in mid-1942 there were 1,500 local Jews. In July 1942, the Germans murdered 280 Jews at the ghetto, and the remaining population was transported to Belzec extermination camp, where they perished. Sędziszów Małopolski was an important center of the Home Army, whose units participated in Operation Tempest. The town was captured by the Soviets on August 4, 1944.