Libštát was probably founded by German colonists in the 13th century. In the middle of the village there is a statue of the Madonna. The building of the former school is a timbered house of the Podkrkonoší type with a carved gable. A Baroque stone bridge over Oleška is an interesting technical monument. It was built in 1822.

Libštát lies in a picturesque valley of the Oleška stream in Podkrkonošská pahorkatina. It is a crossing of hiking trails leading to Krkonoše and Český ráj. Besides that several cycle tracks and walking circuits go through the village.