The town was first mentioned in the land and duty register of the Frýdlant domain from 1381 maintained in the state archive in Děčín.
The town's original name was Lybenwerde. The village became known by the end of the 14th century, when reports began to spread about the healing effects of the local spring. The ones speaking about it were pilgrims who refreshed themselves here with “God’s water” along the way from Lužice to the Marian pilgrimage Church of the Visitation in neighboring Hejnice.At that time, Libverda could boast having famous guests.
Besides the Saxon elector August I, this also included the Bohemian humanist Bohuslav Hasištejnský of Lobkovice.
Since the end of the 16th century, the mineral water here has been helping patients from all corners of Europe.