The village dates from the 19th century when the construction of the fortifications was begun, to which the site is also closely linked in name (into Italian language), and the railway.

In the 1830s, Emperor Francis I of Austria wanted to build a defensive system on the strategically-important Brenner route since he feared an invasion from the south.

The construction of the fortress and later of the Brenner railway, helped thousands of workers who found accommodation in Franzensfeste contributing to the development and growth of the village.

The Franzensfeste Fortress, however, lost its strategic importance with the signing of the Triple Alliance military agreement by Germany, Austria-Hungary and the Kingdom of Italy in 1882.

In 1939 began the construction of the hydroelectric basin for the power plant in Brixen made necessary for the electrification of the railway; the work was completed the following year and the village of Unterau was flooded.

Franzensfeste in 1940 was elevated to municipality, became an important railway junction and the infrastructure for the maintenance of the locomotives and housing the staff were built.