quality:correction, quality:corruption
Manuel Estrada Cabrera regime (1898–1920)

After the assassination of general José María Reina Barrios on 8 February 1898, the Guatemalan cabinet called an emergency meeting to appoint a new successor, but declined to invite Estrada Cabrera to the meeting, even though he was the designated successor to the presidency. There are two different descriptions of how Cabrera was able to become president. The first states that Cabrera entered the cabinet meeting "with pistol drawn" to assert his entitlement to the presidency, while the second states that he showed up unarmed to the meeting and demanded the presidency by virtue of being the designated successor.

The first civilian Guatemalan head of state in over 50 years, Estrada Cabrera overcame resistance to his regime by August 1898 and called for elections in September, which he won handily. In 1898 the legislature convened for the election of President Estrada Cabrera, who triumphed thanks to the large number of soldiers and policemen who went to vote in civilian clothes and to the large number of illiterate family that they brought with them to the polls.

One of Estrada Cabrera's most famous and most bitter legacies was allowing the entry of the United Fruit Company (UFCO) into the Guatemalan economic and political arena. As a member of the Liberal Party, he sought to encourage development of the nation's infrastructure of highways, railroads, and sea ports for the sake of expanding the export economy. By the time Estrada Cabrera assumed the presidency there had been repeated efforts to construct a railroad from the major port of Puerto Barrios to the capital, Guatemala City. Owing to lack of funding exacerbated by the collapse of the internal coffee trade, the railway fell 100 kilometres (60 mi) short of its goal. Estrada Cabrera decided, without consulting the legislature or judiciary, that striking a deal with the UFCO was the only way to finish the railway. Cabrera signed a contract with UFCO's Minor Cooper Keith in 1904 that gave the company tax exemptions, land grants, and control of all railroads on the Atlantic side.

In 1906 Estrada faced serious revolts against his rule; the rebels were supported by the governments of some of the other Central American nations, but Estrada succeeded in putting them down. Elections were held by the people against the will of Estrada Cabrera and thus he had the president-elect murdered in retaliation. In 1907 Estrada narrowly survived an assassination attempt when a bomb exploded near his carriage. It has been suggested that the extreme despotic characteristics of Estrada did not emerge until after an attempt on his life in 1907.

Guatemala City was badly damaged in the 1917 Guatemala earthquake.

Estrada Cabrera continued in power until forced to resign after new revolts in 1920. By that time his power had declined drastically and he was reliant upon the loyalty of a few generals. While the United States threatened intervention if he was removed through revolution, a bipartisan coalition came together to remove him from the presidency. He was removed from office after the national assembly charged that he was mentally incompetent, and appointed Carlos Herrera in his place on 8 April 1920.

Guatemala joined with El Salvador and Honduras in the Federation of Central America from 9 September 1921 until 14 January 1922.

Carlos Herrera served as President of Guatemala from 1920 until 1921. He was succeeded by José María Orellana, who served from 1921 until 1926. Lázaro Chacón González then served until 1931.