The present town of Aizkraukle was built in the 1960s as a village for the builders of the nearby hydroelectric power plant of Pļaviņas. It became a town and the centre of the later Aizkraukle District in 1967. It was initially named Stučka (after a Latvian communist) during the Soviet era. In 1991 it was renamed Aizkraukle, the historical local name.
General industries in the area are: power generation, woodworking, printing and agriculture.
In 2004 Aizkraukle was awarded "The tidiest town in Latvia 2004" in its size group.