The community was established in 1836 with a log tavern and a highway connecting Joliet to Chicago Road.

[citation needed] According to Joseph R. Adams in the May 28, 1896, edition of the Kendall County News, "Though ten miles from a railroad, the villagers appear not wanting.

[citation needed] Lisbon is located in southern Kendall County at 41°28′50″N 88°28′58″W / 41.48056°N 88.48278°W / 41.48056; -88.48278 (41.480600, -88.482740).

U.S. Route 52 passes through the north side of the village, leading east to Joliet and west 32 miles (51 km) to Troy Grove.

The population density was 65.3 inhabitants per square mile (25.2/km2), prior to a significant expansion of the village's area.