An ancient Latgalian settlement. During the 10th century Kraslava district was under authority of the Prince of Polotsk, but the 13th century - under the authority of the Livonian Order. Until the beginning of 18th century it existed as a manor centre. In 1729 Kraslava was bought for 1400 thalers by Johan Ludvig Plater. Plater family ruled Kraslava for two centuries. In the of the18th century Platers began construction of Krāslava palace. After first division of Poland in 1772 Latgale was annexed to Russia. Kraslava began to perish. After construction of Riga - Daugavpils - Vitebsk railway (1865) economic life flourished again. Kraslava was little affected by the World War II, therefore, early wooden buildings of 20th century remained almost untouched.