Fugau was first mentioned in writing in 1474 as belonging to the Dukes of Saxony. In 1630 it was sold to Bohemia and added to the Schluckenau dominion. The population was Protestant and parished in neighboring Spremberg. The re-Catholicization initiated in Bohemia after the Thirty Years' War was unsuccessful in Fugau, which is why this re-Catholicization was carried out by force from 1696 onwards by the Schluckenau lordship. Some of the Protestants then settled in neighboring Saxon towns. In 1780 the construction of the Wenceslas Church began, which was consecrated in 1788. In 1848, due to its special location in the town, a referendum was held on its incorporation into the Kingdom of Saxony, but the majority of residents decided to remain in Bohemia. In 1930 Fugau had 791 inhabitants. The village consisted of 143 houses, including a Catholic church, vicarage, school, post office, customs office, 58 businesses, five inns and around 20 shops. Some of the residents worked as quarrymen and stonemasons. As a result of the Munich Agreement, Fugau was added to the German Reich in 1938 and belonged to the Schluckenau district until 1945. Around 95% of the residents were German, and the Oberlautz dialect was spoken. After the war ended in 1945, all Germans were expelled from Fugau, leaving a depopulated place. In the 1950s, Prague and East Berlin negotiated a territorial settlement and handed over the town to the GDR. However, these failed for unknown reasons. After that, the Czech military began demolishing the buildings. On September 23, 1960, the Wenceslas Church and the school building were the last buildings to be blown up. The pressure wave from the blast shattered numerous window panes on the Saxon side. In the 1990s, a foreign investor planned a large amusement park in the area, but fortunately this was never realized. In 2014, the devastated cemetery was cleared and redesigned with funds from the German-Czech Future Fund, and new trees were planted along the former village street.
Those in Bohemia and in the Catholic The numerous wayside crosses (marterns) found in Upper Lusatia were an expression of the deeply rooted Catholic faith of the population.