The current name of the square is derived from extinct Church of the Virgin Mary Na louži, which was placed next to the current Clam-Gallas Palace.

In the 20th century, the square began to be used as a large car park.

In 2019, Prague City Council decided that the square would be turned into a pedestrian zone.

Prague Institute of Planning and Development decided that Czech architectonic studio Xtopic would create a study about how the square should look in the future.

[1] From European Mobility Week in September 2019, parking on the square was forbidden.