In 1668 the town was almost completely destroyed by a fire. In the 18th century it became part of Prussia and subsequently it was part of Germany from 1871 to 1945. During the era of Nazi Germany the Ordensburg Krössinsee was built near the town in 1934. The SA attacked the Jewish population here during Kristallnacht, later, during the Second World War a forced labour camp was established near the town, from which 31 Poles managed to escape. During World War II, in view of the inevitable defeat of Nazi Germany, on March 2, 1945, the evacuation of people who were unable to fight was ordered. On March 5, the town was captured by the First Polish Army. After World War II the town was handed over to Poland by the Allies per the Potsdam Conference, with Poles being transferred from the East while remaining Germans were expelled to the west. On May 13, 1945 the first transport of Poles expelled from former Eastern Poland, annexed by the Soviet Union, arrived to Złocieniec from the Baranowicze region.