During World War II, the area of Demapaco was used by guerrillas as hideouts and the Libungan River became a battleground.

After the Liberation in 1945, more settlers came to Libungan who cleared the forest and used the area's fertile lands for agriculture.

Other barangays that compose the municipality are Abaga, Cabpangi, Grebona, Gumaga, Kapayawi, Kiloyao, Malengen, Sinapangan, Kitubod, Nicaan and Palakat, which later became defunct.

35 dated December 14, 1978, Palao and Ulamian was established with the total number of barangays of Libungan becoming 20.

[5] Libungan was affected by two fires which had a socio-economic implications to the municipality which destroyed a commercial establishment and local government building.

According to the agreements signed by the Moro Islamic Liberation Front and the Administration of Noynoy Aquino, Carmen will be included in Bangsamoro because of the two out of twenty-eight barangays that voted in favor of joining the Muslim region back in 2001.

Despite this, the current administration aims to establish a Federal Government, where Bangamoro will be realized into a State of the Philippines wherein Carmen will be included in Bangsamoro.

The idea arose because once the entire municipality of Carmen is included in Bangsamoro, the province of North Cotabato will be cut into half, leaving three towns (Banisilan, Alamada, and Libungan) at its west without connection to the center of North Cotabato, isolating these towns in the process.

[5] Poverty Incidence of Libungan Source: Philippine Statistics Authority[12][13][14][15][16][17][18][19] This municipality in the first congressional district of Cotabato is basically an Agricultural area.

Libungan is also the home of the biggest poultry farm in the PALMA Alliance; it has also the Rock crusher and banana chips factory.

It also has 2 filling stations, three pawnshops and a Rural Bank servicing mobility and financial requirements of local business.

[5] Following the EDSA Revolution, newly installed President Corazon Aquino, appointed lawyer Nestor Q. Quintana as mayor of Libungan replacing Dela Serna.

He was later replaced by Leliosa Agravante Villanueva and then later by Luden A. Laguting when Quintana ran for mayor in the 1988 election.

[20] Numerous festivals are held within the municipality by the Manobo people in the barangays of Barongis, Demapaco, Grebona and Sinapangan.