Bad Düben's history goes back at least 1,000 years and traces its origins to the Slavic castle of Dibni, with the first documented mention in 981.

The town was the site of several historical events, including a battle in 1450 in the feud between Friedrich and Wilhelm von Thüringen, in which the old castle was completely destroyed.

The legendary dispute between Hans Kohlhase and Günter von Zaschnitz was settled in a court established in the town in 1533.

In 1631, during the Thirty Years' War Gustav Adolf II and John George I, Elector of Saxony met in the town to forge an alliance against Ferdinand II, Holy Roman Emperor.

In 1948, the town of Düben was awarded the title of "Bad", which means spa.