Santa Barbara housed the world's largest movie studio during the era of silent film. Flying A Studios, a division of the American Film Manufacturing Company, operated on two city blocks centered at State and Mission between 1910 and 1922, with the industry shutting down locally and moving to Hollywood once it outgrew the area, needing the resources of a larger city. Flying A and the other smaller local studios produced approximately 1,200 films during their tenure in Santa Barbara, of which approximately 100 survive.
During this period, the Loughead Aircraft Company was established on lower State Street, and regularly tested seaplanes off of East Beach. This was the genesis of what would later become Lockheed.
The earthquake of June 29, 1925, the first destructive earthquake in California since the 1906 San Francisco quake, destroyed much of Santa Barbara and killed 13 or 14 people. The low death toll is attributed to the early hour (6:23 a.m., before most people were out on the streets, vulnerable to falling masonry). While this quake, like the one in 1812, was centered in the Santa Barbara Channel, it caused no tsunami, and most of the damage was caused by two onshore aftershocks. It came at an opportune time for rebuilding, since a movement for architectural reform and unification around a Spanish Colonial style was already underway. Under the leadership of Pearl Chase, many of the city's famous buildings rose as part of the rebuilding process, including the Santa Barbara County Courthouse, sometimes praised as the "most beautiful public building in the United States."
During World War II, Santa Barbara was home to Marine Corps Air Station Santa Barbara; Naval Reserve Center Santa Barbara at the harbor; was near to the
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