On 7 September 1838 a village fire, favoured by a violent foehn storm, destroyed 129 buildings including the church in the village centre and the northern parts of the village. Within two years, the village was rebuilt in a regular classicist, Biedermeier style.

From 1848 Heiden developed into a whey spa. The work of ophthalmologist Albrecht von Graefe and neurologist Heinrich Frenkel made Heiden one of the most famous health resorts in Europe after 1860. Charles I, the last Emperor of Austria, and the German Emperor Friedrich III were among the guests. Since the end of the Second World War in 1945, Heiden has experienced a renaissance as a spa and holiday resort.