The PPL was founded by former activists of the Popular Democratic Movement (MDP) on 3 February 1990, under the name Corriente Patria Libre (lit.

In February 1992, it was renamed Movimiento Patria Libre (Free Homeland Movement).

It acquired its current name in December 2002 after the movement was officially registered as a political party.

The PPL has strong roots in the movement for left regroupment and led the United Left (Paraguay) (IU) alliance, which also included the Workers' Party (PT), the Socialist Revolutionary Nucleus (NRS), the April 19 Indigenous Movement (M-19 Abril), and the Paraguayan Socialist Party (PSP).

The Paraguayan Communist Party (PCP) withdrew from IU in 2003.