During World War II, the city was captured by the Japanese on 8 December 1941, and its airfield was of some significance; the city and airfield were bombed by the US regularly between January and May 1945. The Japanese had left by the time Filipino guerillas came in early June; the town was officially liberated on June 25, 1945.
Tuguegarao was once the only first class municipality in the province of Cagayan. It has served as the provincial capital of Cagayan since 1893 because of the notable socio-economic progress of the town. In 1975, having adequate facilities and amenities aside from being the region's geographic center and having capabilities of serving as the administrative seat of government for the region, Tuguegarao was declared the regional capital of Region II (Cagayan Valley).