The party was established in 1887 to represent the interests of landowners and middle class merchants.

[2] The Colorado Party was established in the same year and was dominant until the Liberal Revolution in 1904, after which the Liberal Party remained in government for almost the entire period until 1940.

[4] The Liberal Party continued to exist abroad and in 1963 the Renewal Group faction returned to the country to become the "official" opposition to the Stroessner regime.

After the Stroessner regime was overthrown, support for the party rapidly dwindled.

In the 1989 elections the party received just 0.5% of the national vote and failed to win a seat.