Lovech is situated in the Forebalkan area of northern Bulgaria, on both sides of the river Osam, and unifies both mountainous and plain relief.

[4] After this time, the population has started decreasing rapidly in consequence of the poor economic situation in the Bulgarian provinces during the 1990s that led to a new migration in the direction of the country capital Sofia and abroad.

Traces of human activities from very ancient times were found in the region, mainly in the caves near the town.

The first inhabitants of the town were the Thracian tribe of the Meldi[citation needed], whose traces date back to the 4th or 3rd centuries BC.

They founded their capital, called Melta[citation needed], in the area, which was situated at the place of today's neighbourhood and architecture reserve Varosha.

Ivan Alexander was appointed to govern the city by 1330, most likely being appointed due to Lovech being a major city that controlled commercial passage through the Stara Planina passes, and the migration of intellectuals to Moldavia and Wallachia, due to Ottoman conquests, resulting in the beginning of the Despotate of Lovech.

Between 1872 and 1874, the Bulgarian master-builder Nikola Fichev, known also as Kolyu Ficheto, built the famous Covered Bridge (Покрит мост) over the river Osam, the only one of its kind in the Balkans.

Many Turkish families were expelled by the Russian army and the Muslims of Lovech known to be "Lofçalılar" have immigrated to several parts of Turkey (mainly Istanbul, Edirne and Bursa).

In more recent times, Lovech was the place where modern foreign language education in Bulgaria started.

It will be Great Wall Motor's gate of entering the European Union market, thanks to the zero tariff levels.