The date of establishment of the town is considered to be 1760. The place name of Skaudvilė is of surname, derived from Mr. Skaudvilis of those places. The town started to expand after the construction of the Riga - Karaliaučius highway in 1847. Skaudvilė was a trading town, where merchants from Königsberg, the Russian Empire, Poland and other parts of Lithuania came here.

The town itself is a monument of urbanism. The beginnings of this plan date back to the 19th century. At the beginning, when a section of the main street between the church and the road junction turned into a square.