In 1609 Jan Karol Chodkiewicz announced that he would establish a new city next to the old village and would grant the new city Magdeburg rights. The new city adopted a coat of arms showing the Blessed Virgin Mary with the baby Jesus in her arms. Kretinga's patron saint remains the Blessed Virgin.
In 1621 the Sapieha family gained control of the city; they changed its coat of arms to represent Saint Casimir. In 1659 and 1710 the church and monastery were destroyed by Swedish armies. The Sapieha family helped to rebuild and improve it.
In 1720 the city came under the jurisdiction of the Massalski family. Ignacy Jakub Massalski opened a university preparatory school in 1774. The city lost its municipal rights after the partitions of the Polish–Lithuanian Commonwealth.
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