Kobarid is known for the famous battle (Battle of Caporetto), or Battle of Karfreit as it was known by the Central Powers, that took place in its territory, from October 24 to November 9, 1917, on the Austro-Italian front of World War I. Austro-Hungarian forces, reinforced by German units, were able to break into the Italian front line and rout the Italian army, which had practically no mobile reserves. Austro-German forces advanced more than 100 km in the direction of Venice, but they were not able to cross the river Piave, where the Italians (with substantial help from French, English and American allies) established a new defensive line, which they held for the rest of the war.
Among the Italian generals, led by Luigi Cadorna, there was also Pietro Badoglio, who later became head of the Italian government in place of Mussolini after the fall of Fascism in 1943.