Puigcerdà is located near the site of a Ceretani settlement, which was incorporated into Roman territory. The Roman town was named Julia Libyca.

Puigcerdà was founded in 1178 by King Alfonso I of Aragon, Count of Barcelona. In 1178 Puigcerdà replaced Hix as the capital of Cerdanya. Hix is now a village in the commune of Bourg-Madame, in the French part of Cerdagne.

Puigcerdà was unique during the Spanish Civil War in having a democratically elected Anarchist council.

The Portet-Saint-Simon–Puigcerdà railway was opened in 1929, crossing the Pyrenees to France.

Main sights include:

• Puigcerdà Pool.
• Torre del Campanar (12th century). It is the last remain of a parish church destroyed in 1936.
• Romanesque church of Sant Tomàs de Ventajola, known from 958.
• Romanesque church of Sant Andreu Vilallobent, dating to the 10th century and later restored.
• Convent of St. Dominic, founded in 1291 and finished in the 15th century.
• Old Hospital (1190), in Romanesque-Gothic style.