The settlement was first mentioned as "Lyva" in 1253. It was a small unfortified harbour town in the state of the Livonian Order. In the 14th century it was burnt down several times by the Lithuanians.

As a result of the Reformation, two Lutheran parishes emerged in Libau. One congregation was formed by the Protestants of Latvian language, the other one for German speaking Protestants.

The granting of the town charter took place in 1625. Soon after the construction of the harbour began. In 1698, a major fire destroyed most of the town's wooden buildings. The Great Plague of 1708 to 1714 claimed the lives of a third of the citizens.

Svētās Annas baznīca is the oldest church in Liepāja, as it was first mentioned in written records in 1508. It was a wooden church at that time, it got then altered and rebuilt several times. The last construction took place in the 19th century.