In the 19th century Żabno remained a small town, which in 1906 received a rail connection with Tarnów, due to a secondary-importance line from Tarnów to Szczucin. First local industrial facility was a brick making factory which opened in 1905. In the early 20th century the town began a slow process of development, which was stopped by World War I, when the frontline for several months remained along the Dunajec river, which brought widespread destruction. In the Second Polish Republic, Żabno belonged to Kraków Voivodeship.