The castle dates back to the 13th century when Ostrožac was part of property of the noble house of Babonić family.

The castle was rebuilt between 1900 and 1906 by Major of Bihać Lothar Von Berks as a birthday present for his wife, member of the Habsburg family.

On a session held on 7 November 2013, the Commission for National Monuments of Bosnia and Herzegovina decided to designate Ostrožac castle the National Monument of Bosnia and Herzegovina, in a category of the architectural ensemble.

This event produced number of monumental sculptures carved in bihacite stone, of which more than 150 is left in the castle courtyard as a permanent exhibition, forming the open-air Sculpture Park Ostrožac, unique in Southeastern Europe.

[2] Tourism and civic organizations of Cazin and Ostrožac use the castle grounds for shows, concerts, performances and variety of events.