[1] Loi Leng, the highest mountain of the Shan Hills, is located 45 km (28 mi) to the south-east of Lashio.

The British colonial period in this part of the country began in 1887, and the Myanmar Railways line from Mandalay reached Lashio in 1903.

Before British rule Lashio was also the centre of authority for the northern Shan States, but the Burmese post in the valley was close to the Nam Yao, in an old Chinese fortified camp.

The Lashio valley was formerly very populous; but a rebellion, started by the sawbwa of Hsenwi, about ten years before the British occupation, ruined it.

[1] In 1900, the town of Lashio consisted of the European station, with court house and quarters for the civil officers; the military police post, the headquarters of the Lashio battalion of military police; and the native station, in which the various nationalities, Shans, Burmans, Hindus and Muslims, who were divided into separate quarters, with reserves for government servants and for the temporary residences of the five sawbwas of the northern Shan States; and a bazaar.

In World War II, Lashio was taken by the Japanese on April 29, 1942 and liberated by the Allies on March 7, 1945.

[5] After the ceasefire that ended the operation collapsed, the MNDAA and its allies launched a renewed attack to seize the town, culminating in the Battle of Lashio, where rebel forces were victorious.

[6] On 20 January 2025, the MNDAA and the junta agreed to a Chinese-brokered ceasefire, with several sources claiming that a withdraw of the former from Lashio was a condition for the deal.