[3] To distinguish it from the municipality of Grossdietwil in Lucerne it was also called Kleindietwil or Dietwil im Reusstal.

After the conquest of the Aargau in 1415, the village came under the authority of the city of Lucerne and was part of the Meienberg district.

In 1863 a decision of the Cantonal Council of Aargau naturalized all the gypsies who had settled in Dietwil after fleeing Napoleon's armies in Belarus.

The nearby on-ramp to the A14 Motorway, which runs from Zug to Lucerne, has led to growth in Dietwil.

In 2000 about a third of the workers in Dietwil worked in agriculture and slightly more than half in the services sector.

The blazon of the municipal coat of arms is Per fess Argent a Wall Anchor Cross Sable and Azure.

[5] It depicts a wall anchor and is derived from the arms of the Eschenbach family, founders of the local church.

[8] The age distribution, as of 2008[update], in Dietwil is; 129 children or 11.3% of the population are between 0 and 9 years old and 153 teenagers or 13.4% are between 10 and 19.

[10] About 51.4% of the total households were owner occupied, or in other words did not pay rent (though they may have a mortgage or a rent-to-own agreement).

[8] The historical population is given in the following table:[3] The Catholic parish church of Dietwil is listed as a Swiss heritage site of national significance.

[8] From the 2000 census[update], 794 or 77.6% were Roman Catholic, while 121 or 11.8% belonged to the Swiss Reformed Church.