Between September 10 and November 1, Drežnica was part of the liberated territory, known as the Kobarid Republic, administered by the local anti-Fascist resistance (composed of Partisans, former TIGR members, and unaffiliated insurgents).

In November 1943, it was occupied by Nazi German forces, but the Partisan resistance remained strong in the surrounding mountainous area around Mount Krn.

This caused a severe economic crisis, and many people emigrated from the village, either to the nearby Anglo-American zone, to Tolmin, or to the interior of Slovenia.

[3] The paintings inside the church were made during World War II by the Slovene modernist painters Zoran Mušič and Avgust Černigoj.

In July 2009, the Slovenian politician and former Prime Minister Janez Janša married his current spouse, Urška Bačovnik, in the church.