The present market square was established in Oświęcim during the 16th century. At that time, the area also contained the locally famous town hall and other wooden buildings. According to documentation from 1867, the square had a well, three-story tenement houses, a monument of St. John of Nepomuk, and the storied town hall, which was the seat of the local authorities until World War II.
Before World War II, the square was primarily used by farmers from the countryside coming to market to sell their produce.
In 1941, Jews were gathered in the square for deportation to the ghettos in Będzin, Chrzanów, and Sosnowiec.
During the war, the main square was partially remodelled in the Nazi style. In the center of the square, a bunker was built; after the war, the bunker was made into a shopping center and was only recently demolished. Evidence of the remodeling can be seen in the arcades, which remain on the former Herz Hotel building and on the building on Plebańska Street.