[3] Prior to the end of World War I, Varnsdorf was part of Austria-Hungary.

[5] Following the end of World War II, its ethnic German population was mostly expelled to Germany.

Its tradition here dates back to 1777, when the Velveta company was founded and became a significant manufacturer of cotton fabrics, especially for clothing purposes.

[9][10] Other big textile company with headquarters in Varnsdorf is Frottana, producer of towels.

The engineering industry is represented by Továrny obráběcích strojů – TOS company (machine tools manufacturer) and KWL s.r.o., producer of cable harnesses.

[9] Varnsdorf is also home to the Kocour Brewery, who make a range of ales, including American style IPA and a stout.

[12] In 1872, the Church of Saint Francis of Assisi in the Romanesque Revival style was built in Studánka.

[12] Other sights include various Art Nouveau and Neo-Renaissance buildings in the town and Varnsdorf Museum.