The first written mention of Krásná Lípa is from 1361. About 30 families from Upper
Franconia colonized the place. Krásná Lípa belonged to the
Tolštejn estate until the 16th century, when it was purchased by the Wartenberg family and joined to the
Kamenice estate. John Barnes, an English expert on textile industry, was hired in 1731 to found a spinning factory in the town. In 1731, Krásná Lípa was promoted to a
market town by Emperor
Charles VI. In 1870, Krásná Lípa became a town. In 1910, the town proper reached its greatest population with 6,930 inhabitants. The
expulsion of Germans in 1945–1946 reduced the population by half and more than 300 deserted houses were demolished, others dilapidated. ==Demographics==