The town is located at the Ratnyčia River estuary to the Nemunas River and is surrounded by a natural forest reserve. The town is situated in a picturesque landscape with rivers, lakes, hills and forests.
According to some sources the site of present-day Druskininkai was inhabited by local Yotvingian tribes in the early Middle Ages. In the 13th century the area became a part of the expanding Duchy of Lithuania. A small castle was built in the area as a part of the defence system against the Teutonic Order. In 1308 the castle was conquered by the Teutonic Knights and destroyed, causing a depopulation of the area.
The first written mention of Druskininkai dates back to 1636. The name of the town suggests that the local population collected precious minerals. In the late 18th century it was believed that minerals found in the waters of Druskininkai area produced health benefits and their usage in the medical treatment of asthma and other ailments began. In the early 19th century Ignacy Fonberger, a professor at the University of Vilnius, analyzed the chemical composition of Druskininkai's waters and showed that they contain large amounts of Calcium, Sodium, Potassium, Iodine, Bromine, Iron and Magnesium. He also promoted the town as a holiday resort for the population of Vilnius.
In 1837 czar Nicholas I of Russia bestowed upon Druskininkai the status of a spa, and construction of pensions and hostels started. To ease communication to the spa, a ferry service on the Nemunas was started.
The spa became popular in many parts of the former Polish-Lithuanian Commonwealth. In 1862 the Warsaw – Saint Petersburg Railway was opened and Druskininkai's railway station was placed only 19 kilometres (12 miles) from the city. By the beginning of the 20th century the Druskininkai spa became one of the most popular resorts in the area, with tourists and convalescents coming from all over the world. It also became a place of summer residence for the middle class of Vilnius, Warsaw and Moscow.
After World War I the town became part of Poland (see Polish-Lithuanian conflict). Its popularity was increased by the patronage of Józef Piłsudski, who spent most of his summer holidays there and promoted the development of the area. Soon most of the resort was bought up by the state-owned Bank Gospodarstwa Krajowego and the construction of luxurious villas and pensions started. In 1934 a railway link with the Parečča train station was opened and the town became more accessible to the general public. It was a gmina center in Grodno powiat of Białystok Voivodeship.
After Poland was invaded in September 1939, the town was briefly incorporated into the Belarusian SSR as raion center in Belostok Oblast. However, on 7 September 1940, Stalin transferred Druskininkai to Lithuania which in turn was annexed in August of that year and incorporated into the Soviet Union. It was occupied by Nazi Germany on 23 June 1941 and was part of Bezirk Bialystok. At this period, and as part of the "Final Solution" plan of the Nazis, the Jewish community of the town stopped to exist, some of them sent to ghettos in near-by Kaunas, and some killed occasionally during the occupation. It was occupied again by Red Army on 14 July 1944 and passed to Lithuanian SSR. In 1951, Druskininkai began to grow rapidly again and several huge sanatoriums and spa hospitals were opened. The city became a famous resort, attracting around 400,000 visitors per year from all over the Soviet Union.
The dissolution of the Soviet Union was followed by economic difficulties faced by Lithuania and some of its resorts, due to the lack of many of their former tourists. In 2001 unemployment reached 29% in Druskininkai. Recently Druskininkai began a revival. Sanatoriums, spas and the city's infrastructure have been renovated by both the local government and privately owned businesses.
Despite damage inflicted during World War I, the city features houses and villas reflecting all periods of its development - Russian, Polish and Lithuanian.
The first water park in Lithuania was opened in Druskininkai on 26 December 2006.
The Snow Arena (construction completed in August 2011) is one of the biggest indoor skiing slopes in Europe, with a year-round indoor slope length of 460 metres, width up to 63 metres, and a height difference of 65.65 metres. In addition there is a seasonal outdoor route of 640 metres. In alpine ski complex Snow Arena works school of skiing and snowboarding DruSkiSchool.
Also you can visit Karolis Dineikos Wellness Park or go up to Snow Arena by cableway and enjoy panoramic views of Druskininkai.
There are a number of art and historical museums and galleries in the city. Many cultural events take place, most of them during spring, summer and fall.
During 1896–1910, famous Lithuanian composer and painter Mikalojus Konstantinas Čiurlionis lived and worked in the city. A number of regular events take place at his memorial museum each year.
An annual poetry event, "Druskininkai poetic fall", began in 1985 and attracts authors from all over the world. In 2001, Grūtas park was opened near Druskininkai, exposing sculptures and other materials of the Soviet era.
There is also an annual International Arts Festival 'Druskininkų vasara su M.K.Čiurlioniu' (eng. The summer in Druskininkai with Mikalojus Konstantinas Čiurlionis).
Druskininkai is twinned with:Mikalojus Konstantinas Čiurlionis (1875-1911), lived here
Jan Czeczot (1796-1847), poet and ethnographer, died here
Jacques Lipchitz (1891-1973), Jewish sculptor, was born here
Antanas Sniečkus (1902-1974), first secretary of the Lithuanian Communist Party died here
American actor Charles Bronson (1921-2003)'s father was born in Druskininkai
Rabbi Shmaryahu Yitzchak Bloch (ca. 1862-1923), lived here