Covering an area of 5,125 km2 (1,979 sq mi), Liaoyuan is the smallest among the prefecture-level divisions of Jilin.

[2] Liaoyuan was an imperial hunting ground during the Qing dynasty, going by the name Shengjing Paddock (盛京圍場).

Ordinary citizens were prohibited from entering this region until late 1800s, when waves of immigrants from Hebei, Shandong and Henan began to populate Manchuria (see Chuang Guandong).

Between 1931 and 1945, Xi'an was an important coal-mining city in Manchukuo and also the place where American Army General Jonathan M. Wainwright was held as a prisoner.

Coal mining in Liaoyuan started in late Qing dynasty and continued to be the most important industry for more than 100 years.

During the Japanese occupation from 1931 to 1945, Liaoyuan was the second largest coal-mining center of Manchukuo, preceded only by Fushun.

On December 16, 2005, a fire in Liaoyuan Central Hospital killed at least 39 people, 33 of whom were patients.