Krynica was first recorded in official documents in 1547 and became a town in 1889. Due to its convenient location, infrastructure and rail connections with major cities in Europe, Krynica-Zdrój (Zdrój means mineral spring in Polish) was the location of winter sports tournaments during the interwar period, including the 1931 World Ice Hockey Championships, the 1958 and 1962 FIL World Luge Championships, the 1935 FIL European Luge Championships and the 2004 Euro Ice Hockey Challenge played in the town.

A gondola lift built in 1997 on the Jaworzyna Krynicka mountain overlooking Krynica, and subsequent investment in modern skiing facilities (apart from the former track of bobsleigh) made Krynica one of the most important ski resorts in Poland. Nearby Beskid Sadecki mountains are also a perfect setting for recreational cross-country skiing in winter and mountain-biking in summer.

The winter sport of bandy returned to Poland ine the 2010s, after many decades. When the country made their first international appearance in 2006 at the World Championships for boys U15 in Edsbyn, Krynica-Zdrój contributed with most players.

Krynica was home to Nikifor (birth name Epifaniusz Drowniak), a famous naïve painter in communist Poland.

Points of interest include:

• Koncertowa in Park Slotwinski built in 1870 (today with a restaurant inside)
• Pump-room Slotwinka in Park Slotwinski built in 1815 (open only in summer)
• Historical 19th-century villas including The Góral Villa, The Biala Rïza Villa , The Janina Villa and The Bialy Orzel Villa
• 19th-century Greek Catholic Tserkva of Guardianship of the Blessed Virgin Mary
• Modernist Patria Hotel designed by Bohdan Pniewski and built in 1932