Between 1548 and 1552, Lackenbach was developed as a fort. After 1670-71 many Jews from Vienna settled there. From the 18th century, Lackenbach belonged to Prince Esterházy's Siebengemeinden where the Jews had their own autonomous administration.
The town, like the rest of Burgenland, belonged to the Kingdom of Hungary until 1920-21. After the end of the First World War, the western border area of Hungary was awarded to Austria by the Treaties of St. Germain and Trianon. Since 1921, the town has belonged to the newly founded State of Burgenland.
In 1940, a "Gypsy-Anhaltelager" was established on municipal territory at a former estate of the Esterházys. The inmates, mainly Romani from Burgenland, were made to do forced labor and, starting in 1943, were partially deported to Auschwitz-Birkenau where they were murdered. At the end of March 1945, the camp's administrators fled the approaching Red Army, so there were never any evacuation marches.