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Szczawno-Zdrój is located at an altitude of 410 m at the foot of the Chełmiec mountain, the highest elevation (810 m) of the Waldenburg mountains (Wałbrzyskie Góry), just west of the county seat, Wałbrzych (Waldenburg).

The place was first mentioned in a document of 1221. At first it belonged to the principality of Wrocław before it came into possession of the Bohemian Crown in 1391/1461. From 1509 until 1931 the domains were owned by the Hochberg family. The first description of the therapeutic properties of the mineral springs date from 1598. The development of the spa began in 1816. Numerous famous people visited the spa, among them the Polish pianist Henryk Wieniawski. Since 1966 an annual music festival, named for him (Festiwal Henryka Wieniawskiego), takes place in Szczawno-Zdrój. Until 1945 Szczawno-Zdrój (German: Bad Salzbrunn) was part of Germany. In 1945 it received the formal status of a town, which until 1946 was named Solice-Zdrój.

The German playwright Gerhart HAUPTMANN (1862–1946) was born here. Hauptmann received the Nobel Award for Literature in 1912.

The pump room Elisenhalle [left] was originally built in 1830, and was rebuilt in 1893.