The year 1774 marks the beginning of a separate history for the northern part of Moldavia, known from then on as Bucovina. That was the year when the armies of the Habsburg Empire captured this part of Moldavia. Thus, Bucovina, which could be translated as the “country of beeches,” had three administrative stages: military (1774-86), civil (1786-1848), and then the stage as an autonomous duchy and part of the Habsburg Empire. The last stage lasted till 1918, when the province was joined with Romania.

During the Austrian occupation, Bucovina enjoyed an important economic and cultural development. The Habsburg Empire invested heavily in the new territory, a measure which was very necessary because that a large part of the local population had left Bucovina before the Austrian occupation. Furthermore, the colonization took place because of the economic facilities given to each colonist, including the Romanians. In this way, many aspects of the local economy improved greatly, including the roads and railways, the crafts, and the trades.

Culturally, Bucovina had witnessed an important development in its educational system based on the Austrian model. The “Franz Joseph” University in Cernauti, the region's capital, was founded in 1875. As students formed it from all the different ethnic groups of Bucovina, the local university formed an important elite. One of these students, K.A. Romstorfer, managed to save many important monuments in Bucovina such as the famous “painted churches” which are so important for tourism today.

At first, the locals had just eight representatives in the Austrian Parliament. In 1849, Bucovina became a duchy, with its own assembly inaugurated in 1861. All the ethnic groups were represented in the local parliament, and the unification with Romania was voted on November 28, 1918.