The municipality was formed in 1971 by the amalgamation of the market town (köping) of Ljusdal (instituted in 1914) with the rural municipalities Järvsö, Färila, Los and Ramsjö.

Geographically the town is located on the shores of the river Ljusnan, along the shores of which Sweden's northern main line railway (Norra Stambanan) stretches. The municipality calls itself "Sweden's nearest Norrland", with Norrland being historically how Sweden's north was referred to. Geographically, the municipality is located at the centre of Sweden.

In this large municipality (Sweden's 25th largest) there are several nature activities one can enjoy. Along Ljusnan there are a total of 40 kilometers of water ways, with possibilities for sailing, rafting, fishing or taking a tour with the tour boats. Hamra National Park is also located partly within the western parts of the municipality.

The area had a large immigration from Finland in the 17th and 18th century in the western part of the municipality known as Orsa Finnmark (in Dalarna). Still there are many names which trace this Finnish influence.

The population was boosted when the mainline railway was constructed here in the late 19th century.

In contemporary Sweden Ljusdal is perhaps best known for its very successful bandy team and for the annual Bandy World Cup held in the town.

Figures as of 2004, from Statistics Sweden

Tourism in the municipality is focussed on Järvsö. Popular tourist activities in Järvsö include skiing on Järvsöbacken and visiting Järvzoo.

Gröntjärn Nature Reserve is located in Ljusdal Municipality around 20 kilometers north of Ljusdal. Here several Kettle holes formed during glacial retreat, where ice blocks melted under sediments. The pool is not fed by streams but by groundwater and can see large variations in the lake level. The ground water source also gives the lake it is characteristic turquoise-green colouring.

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Wikipedia