[11] While archaeological evidence indicates that the Jaega inhabited nearby areas thousands of years ago, Samuel and Fannie James, an African American couple, became the first known settlers in modern-day Lake Worth Beach in 1885, filing a homestead claim on 187 acres (76 ha).

[14] While evidence near the town of Jupiter indicates local inhabitation dating back to the Paleo-Indian period,[15] the Jaega were the first known tribe to have resided along the Florida Atlantic coast in the areas of Martin and Palm Beach counties.

The Jameses were an African American couple reported to be ex-slaves, known as the Black Diamonds, who settled on the shores of the Lake Worth Lagoon near the current 5th Avenue South in 1885.

A stone monument dedicated to Samuel and Fannie James at the northwest corner of Lucerne Avenue (State Road 802) and J Street inaccurately uses the date 1883, due to a transcription error.

[18]: 119 After Henry Flagler extended the Florida East Coast Railway (FEC) south from West Palm Beach to Miami in 1896, a land development scheme was created to plant a townsite between the railroad and the lake.

[25] During that year, the library, schoolhouse, newspaper, Women's Club, Chamber of Commerce, first church,[23]: 28  and first railroad station (operated by the FEC at Lake Avenue) were established.

"[4] Additionally, from 1911 to 1912, the Palm Beach Farms Company platted approximately 7,000 residential lots and constructed some 55 mi (89 km) of roads, including Lake Avenue, a major thoroughfare.

"[24] Another section of the town was plotted in 1917, the Osborne Colored Addition, a small African American neighborhood along the south end of Lake Worth and west of the FEC.

[34] The storm demolished or severely damaged many buildings, including First Presbyterian Church, St. Andrew's Episcopal Church, the Oakley Theater, the Gulf Stream Hotel, the Scottish Rites Cathedral, the Masonic Temple, the Florida Hotel, a car dealership, a sporting goods store, an investment company, the Old Lake Worth City Hall,[35] and an auditorium at Lake Worth Community High School.

[5]: 16  This included when President Franklin D. Roosevelt's Works Progress Administration built the striking,[5]: 18  Moorish-styled "city gymnasium" on the corner of Lake Avenue and Dixie Highway.

These Finnish immigrants established three churches in Lake Worth to preserve their heritage while also benefiting the local economy,[43] which returned to a state of stability in the post-war years.

[47] Despite the Brown vs. Board of Education decision by the Supreme Court of the United States in 1954, Palm Beach County schools only slowly integrated.

The venue now known as the Lake Worth Playhouse was the Playtoy, and was well known in Palm Beach County as the theater that showed X-rated movies; Deep Throat was shown there, motivating a police raid in the 1970s.

[55] The William O. Lockhart Municipal Pier, constructed in 1954, suffered significant damage from the hurricanes, especially due to Frances and Jeanne, requiring $3.4 million to be repaired.

Then-City Manager Michael Bornstein described the controversy as a "dust-up" that became politicized, while the accuser, Pastor Mike Olive of Common Ground Church, later stated that the "problems are behind us now.

Then-Mayor Pam Triolo and then-Lake Worth Beach Commissioner Omari Hardy became involved in a heated discussion over the potential for shutting off electrical services due to non-payment in the midst of the COVID-19 pandemic lockdowns.

The lake is a long channel that spans much of east-central and northeastern Palm Beach County;[61] indeed, the Intracoastal Waterway traverses the length of the lagoon.

Much of Lake Worth Beach is built on a rapidly drained white or gray sand which is too dry and infertile to support vigorous plant growth.

Additionally, as of 2021, approximately 38.7% of residents were born outside of the United States,[73] many of whom immigrated from the Caribbean or Latin America,[72] and just 44.9% of people in Lake Worth Beach only spoke English.

[108] The entire city is located within the Florida Senate's 24th district, which includes parts of east-central Palm Beach County and is currently represented by Bobby Powell (D).

[111] Decades earlier, the city and Palm Beach County were both reliably right-leaning, with the latter voting for the Republican Party nominee for president of the United States in each election from 1948 to 1988.

[30] Today, the Lake Worth Playhouse hosts a number of year-round events, including ballets, dramas, foreign and independent films, musicals, and operas.

[122] Midnight Sun Festival, originally called Finlandia Days, is an event celebrating Lake Worth Beach's Finnish population and has been held annually at Bryant Park since 1983.

[122][132][133] A substantial portion of the 1981 movie, Body Heat, starring William Hurt and Kathleen Turner, was filmed in downtown Lake Worth Beach.

[156] On the west side of the city, the county-owned John Prince Memorial Park follows the winding shores of Lake Osborne and offers several miles of bike and walking trails as well as hundreds of acres for picnicking, volleyball, and overnight camping.

[162] Lake Worth Beach is part of the West Palm Beach–Fort Pierce television market, ranked as the 38th largest in the United States by Nielsen Media Research.

[163] The market is served by stations affiliated with major American networks including WPTV-TV/5 (NBC), WPEC/12 (CBS), WPBF/25 (ABC), WFLX/29 (FOX), WTVX/34 (CW), WXEL-TV/42 (PBS), WTCN-CD/43 (MYTV),[164] WWHB-CD/48 (Azteca),[165] WHDT/59 (Court TV),[164] WFGC/61 (CTN),[165] WPXP-TV/67 (ION),[164] as well as local channel WBWP-LD/57 (Ind.).

[181] Partially due to this, city commissioners narrowly voted to disband the Lake Worth Police Department in 2008, with law enforcement duties being taken over by the Palm Beach County Sheriff's Office (PBSO).

[184] Today, PBSO maintains a police substation at 120 North G Street as part of their 14th district, which encompasses the municipal boundaries of Lake Worth Beach and has 82 deputies and 12 civilian employees.

Citizen Owned Energy forecasts that greenhouse gas emissions generated by the Lake Worth Beach Electric Utility will decrease to less than half of its 2005 levels by 2024.