On July 30, 1391, King Władysław Jagiełło granted the so-called Muszyna State (with two towns and 35 villages) to the Bishops of Kraków.

As a result, the Muszyna State (Państwo Muszyńskie) was treated as a separate territorial unit, with its own administration, army and courts.

Muszyna was an important center of the Bar Confederation, and after Partitions of Poland, it became part of Austrian Galicia, where it remained from 1772 to 1918.

In the 1920s, thanks to the efforts of mayor Antoni Jurczak and doctor Seweryn Msciwujewski, Muszyna received the status of a spa town.

In 1930 it became a member of the Association of Polish Spa Towns, and in 1932, first mineral springs (Antoni and Wanda) were opened.