First granted in 1763 as Concord, in 1764 the town was renamed Chiswick, after the Duke of Devonshire's castle, when Rumford took the name Concord. In 1768 the town was renamed Gunthwaite after a relation of Governor John Wentworth. The name Lisbon was selected in 1824 by Governor Levi Woodbury, whose friend Colonel William Jarvis had been consul at Lisbon, Portugal. Lisbon once included land that is now part of Littleton and Sugar Hill.
Lisbon is home of the annual Lilac Festival - a popular event that takes place every spring in the village.