Bad Düben's history goes back at least 1,000 years and traces its origins to theSlavic castle ofDibni, with the first documented mention in 981. Fortifications around the castle led in time to the formation of the town at the Mulde. The town was the site of several historical events, including a battle in 1450 in the feud between Friedrich and Wilhelm von Thüringen, in which the old castle was completely destroyed. The legendary dispute betweenHans Kohlhase and Günter von Zaschnitz was settled in a court established in the town in 1533.
In 1948, the town of Düben was awarded the title of "Bad", which meansspa. Following the administrative reform and subsequent disbandment ofSaxony–Anhalt in 1952, Bad Düben became a part of the newly formed Leipzig District. In July 1990, Bad Düben became a part of the reformedSaxony and was incorporated into the District ofDelitzsch, which became a part ofNordsachsen (Northern Saxony) following the administrative reform of 2008.