The castle of Olesnic (polish: Pałac w Oleśnicy Małej; german: Schloss Klein Öls) erected by the Piast duke Bolesław I the Tall of Silesia was first mentioned in an 1173 deed.

Bolesław's son and successor Duke Henry I the Bearded and his wife Saint Hedwig of Andechs granted it to the Knights Templar in 1226.

After in 1742 most of Silesia had been annexed by Prussia, the commandry was finally secularised at the behest of King Frederick William III in 1810.

After the War of the Sixth Coalition the king granted the estate to his victorious general Ludwig Yorck von Wartenburg.

Oleśnica Mała was part of Germany until 1945, bearing the german name Klein Öls, when it passed onto Poland under the Potsdam Agreement and was renamed.