The name Lutowiska comes from the Russian word „letowyshche” designating a place where cattle and sheep were grazed in summer. The village was set up in the 16th century according  o the Wallachian law in estates that then belonged to the Stadnicki family. The village was first referred to in 1580. The village was located on the intersection of busy trade routes from Sanok to the Tucholska Pass and further to Transylvania and from Przemyśl through the Beskid Mountains or Użock Pass to Użhorod. There was also a local route to the East through Turka to Drohobycz. Such a place encouraged the location of a town. Thanks to the efforts of Ludwik Urbański Lutowiska was granted a charter at the beginningof the 18th century.
In 1742 King August III granted the town a privilege to hold ten big fairs a year (by comparison  Sanok and Lesko only held two big fairs a year). In the 19th century the big fairs in Lutowiska were famous throughout Europe. People chiefly traded in oxen that were grazed on high-elevation meadows (poloninas). They were grey, long-horned cattle called Hungarian, willingly bought even by merchants from Western Europe. During thebig fair the whole Lutowiska was packed with cattle, a few thousand animals were here at a time. Lutowiska’s centra consisted then of two adjoining market places surrounded by wooden houses, which mainly belonged to Jews, a majority of the town’s population. Lutowiska lost the status of town in 1919, though it remained the region’s significant trade and administrative centre until the Second World War. The census of 1921 discovered 261 houses inhabited by 2125 people. In 1939 the settlement already had about 3500 inhabitants. In June 1942 Gestapo officers from Ustrzyki Dolne shot ca. 650 local Jews. They also burnt the synagogue and Jewish houses, practically all the wooden buildings in Lutowiska. Between 1945 and 1951 Lutowiska was within the Soviet borders, the name was changed to Shevchenko. At the end of 1951 a mere 28 families lived there. Resettlers from the Sokal and Hrubieszów regions mainly moved to the deserted houses. The village only reverted to its original name after a few years. In 1951 Lutowiska became home to communal authorities.

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