Lutowiska was established approximately in 1580. It was granted municipal status prior to 1728. In the 18th century an economic boom took place in the Bieszczady Mountains. Lutowiska, situated on the trade route, leading to Rus Zakarpacka and Hungarian Slovakia, was granted in 1742 a law to hold eight trade fairs per year. Gradually, the livestock trade fairs of Lutowiska became well known across Galicia.
After the Second World War, from 1951, Lutowiska was situated within the borders of the Soviet Union. When the village was handed over to Poland, natives were displaced to the Ukraine. Currently, it is the seat of the biggest, as far as the territory is concerned, municipality in Poland. The village has over 700 residents.