The London Memorandum provided the population with the option of emigration to Italy. The new Yugoslavia's emergent communist system and its application, along with lingering hostilities between Italians and Yugoslavs (like the murder of priest Francesco Bonifacio), contributed to a large wave of emigration (part of the Istrian exodus). By April 1956, 2/3 of the population emigrated from the area to Italy.
In 1955 Grožnjan lost its municipality status and became part of Buje municipality. In 1965, when the Town of Arts was founded, some of the housing was given to artists from Croatia, Slovenia and Vojvodina, and some were assigned to the Cultural Centre of the International Music Youth Federation in 1969. In 1993. Grožnjan got its municipality status again
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