 After Venice's fall in 1797, Muggia became part of the Austrian Empire, under which it developed an important naval shipbuilding industry which flourished until after World War II.Throughout the Austro-Hungarian period it remained part of the Margravate of Istria, first within the Kingdom of Illyria and then, after 1861, within the Austrian Littoral.The municipality of Muggia historically extended further south than today, including several settlements that are now part of Slovenia