The area around Smiltene was a part of the Latgalian lands of Tālava. After Crusaders had taken over most of the modern day Latvia, the area was part of the lands of the bishop of Riga. In 1359 on the steep hill near the river Abuls was built a castle. The tradesmen and craftsmen village around it - Smiltestele - first is mentioned in historical documents in 1427, since 1523 it was called a town. During the Livonian war the castle and the town were brought to ruin by the army of Ivan the Terrible. Under Polish–Lithuanian Commonwealth Smiltene and the area surrounding it were controlled by the starosta Kaspar Mlodecki.