In 1348, Kazimierz Wielki granted Magdeburg rights to Krościenko, and shaped the village into a medieval town, with a market square and street grid.

Royal decree, giving the charter to Krościenko does not exist, as it was burned in a Hussite raid in 1433.

Due to convenient location along a merchant route to Hungary, Krościenko prospered.

New owners noticed local mineral waters, and decided to turn Krościenko into a spa, with guest houses and baths.

In the Second Polish Republic, it became a very popular tourist resort, located in close proximity to Pieniny National Park.