The first notes on Smržovka date back to 1586. The entire area was administered by the Nobles of Smiřice, then a part of the manor was confiscated and given to the Duke of Frýdlant. In his reign the village developed fast and became a centre of textile and glass industries. The traditional manufacture of costume jewellery and foundry glass has been preserved up to now.

The town extends along the Smržovský potok in the length of several kilometres. It lies in the holiday area of Jizerské hory and is a popular summer and winter destination. There is a dense network of marked tourist trails both in the town and its environs which will lead hikers into the entire Jizerské hory.