This very old town is cited in the biography of Saint Pirmin, d. 753, who founded Hornbach Abbey, to which it probably belonged under the name Locvillare, from the German name Ludo and the noun weyler, or villare, meaning village. It belonged in succession to the seigneurie of Bitche, the abbaye Sainte-Croix and Bouzonville in 1115.
On the religious side, Loutzviller, with its churches in Breidenbach, Rolbing and Schweyen, is a very old parish originally in the Hornbach archpresbyteriate, then part of Volmunster in 1802. The Protestant Reformation was brought in during the last decades of the 16th century by Marguerite d'Haraucourt, widow of Jean de Schwarzenberg, owner of the fiefdom but it had little impact on the religious landscape.
The village was part of the short-lived canton of Breidenbach from 1790 to 1802, then the Volmunster canton.