Krásná Lípa consists of nine municipal parts (in brackets population according to the 2021 census):[2] Both the Czech and German name literally mean "beautiful linden".

The Lužnička Stream originates south of the town proper, on the slope of Široký vrch.

[4] John Barnes, an English expert on textile industry, was hired in 1731 to found a spinning factory in the town.

The expulsion of Germans in 1945–1946 reduced the population by half and more than 300 deserted houses were demolished, others dilapidated.

[8] The town hall is a Neo-Renaissance building with Art Nouveau elements built in 1899–1900, originally as the seat of the savings bank.