The historic town centre is well preserved and is protected by law as an urban monument zone.

[4] Jilemnice was founded probably in the 1320s as an economic centre of an extensive Štěpanice estate owned by the Waldstein family.

The regular ground plan of the historic centre indicates that the town was probably founded on a green field.

[5] The town development was even more restricted from 1492, when the Waldstein family divided the estate into two parts.

Harrachs' progressive economic policy led to raising of local linen industry to the world level.

[5] Jilemnice continued to develop in the interwar period and became a tourist resort, but the war had a negative impact on the economy and tourism.

[5] The largest industrial employer based in the town is the Czech branch of the Devro company, a manufacturer of collagen casings for food products.