The area has been settled since the Norwegian Iron Age.  It is mentioned in the old sagas at "Litlikaupangr" (the small trading place" and as "Litlihamarr" (the small Hamar) - to distinquish it from the town and bishopric of Hamar.  The farm that gave Lillehammer its name has always been called Hammer, as has the family that lived there.It is also mentioned as a site council in 1390.  Lillehammer had a lively market by the 1800s, and obtained rights as a merchant town on August 7, 1827, at which point there were 50 registered residents within its boundaries.

Lillehammer a modern town with medieval skiing roots
Lillehammer was granted its town charter as recently as 1827.  Nonetheless, its coat of arms bears witness to a stirring medieval deed that changed the course of Norwegian history.  Lillehammers heraldic bearing, a Viking on skis, is the only coat of arms in the world to feature a skier.

The skier dates from the early 13th century, when Norway was torn by civil war between the Baglere and Birkebeinere, who supported rival claimants to the Norwegian throne.

The town of Lillehammer was established as a municipality January 1, 1838.  The rural municipality of Fåberg was merged with Lillehammer January 1, 1964.

The city cente is a well-preserved late 19th century concentration of wooden houses, which enjoys a picturesque location overlooking the northern part of lake Mjøsa and the river Lågen surrounded by mountains.  The main street is excellent for people-watching, shopping and dining.