The rowan (pihlaja) is an uncommon tree in the area, which is most likely why this name was chosen for the lake.

The settlement was initially a part of the Ruovesi parish until Keuruu was separated from it in the 1630s.

The old church, designed by Matti Åkerblom and built in the early 1780s, is located in the forest outside the main populated areas, and is often referred to as the Erämaakirkko (lit.

[8] It has been designated and protected by the Finnish Heritage Agency as a nationally important built cultural environment (Valtakunnallisesti merkittävä rakennettu kulttuuriympäristö).

[10] There is a primary school in Pihlajavesi, but for secondary education pupils to travel to the centre of Keuruu.