Until 13th century, Smiltene region was a part of Talava country, inhabited by Latgalians. After Crusaders invasion it was won by the Archbishop of Riga, and he built a stone castle on the steep river bank of Abuls in 1370. The following wars and epidemics did not spare the development of settlement, nor the people. Present shape of the town began to emerge in 19th century along with the vigorous activities of owner of Smiltene manor first Lieven. Until the World War I, wood working factory, hydroelectric power plant (established in 1901, first in the Baltics), and other companies were operating in Smiltene. In 1944 when the German forces retreated, much of the Smiltene historical buildings were destroyed in the fire.
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