When the von Rosen family arrived, they first started building what would become the Lielstraupe Castle in the 13th century.

Due to its role along trade routes it became known in German as Roop, and received its town privileges in 1374.

During the fourteenth century, Straupe flourished as part of the mercantile Hanseatic League and was on its way to becoming a 'Hansa City'.

While mostly rebuilt, Straupe had lost its trade significance and eventually reverted back to village status by the 17th century.

During the Latvian War of Independence, Straupe witnessed fighting between Estonian-Latvian and German Landeswehr forces in the Battle of Cesis (1919).