Historical documents first mention the 1224 land division act between the Order of the Sword Brothers and the Bishop of Riga. In the 14th century the Archbishop of Riga built a stone castle around which a populated area was formed.
Vecgulbene (Old Gulbene) estate complex was built in the middle and second half of the 19th century. The most significant buildings are the White Palace (Brivibas St. 12), the Red Palace (Parka St. 1) and the magazine granary (Brivibas St. 9). Both palaces have been destroyed and rebuilt several times. Since 1924 the elementary school of the city occupies the Red Palace.
After the construction of the Stukmani to Valka narrow-gauge railway in 1903 and subsequent broad-gauge line construction during World War I, Vecgulbene was established as an important railway junction, and in 1920 it was given the rights of a small village. During the first period of Latvian independence, besides those employed by the railways, small business, trades and crafts were the most important economic activities in the town. After World War II, during the Soviet occupation, Gulbene initially became a district, and later, in 1950, a regional centre. In the 1960s and 1970s branches of several major industrial companies were established in the city. Local enterprise was mainly involved with wood processing.
The most architecturally significant building in the area is the passenger building at Gulbene railway station, built in 1926 by the well-known professor of architecture Peteris Feders (1868 - 1936). It is one of the largest and most magnificent railway station buildings in Latvia.
The Evangelical Lutheran church of Gulbene (Brivibas St. 13) was built on the ancient Latgalian castle mound in place of the later Middle Age brick castle from 1838�1843. The church is built in the Classical style
