city was founded as a foundry in 1795-1796, following the decree of Empress Catherine II titled On the establishment of a foundry in the Donetsk uyezd by the Lugan River. The settlement that developed around the plant was named Lugansk, deriving its name from the hydronym Lugan, which itself originates from the Russian word lug (meadow). The settlement was granted city status in 1882.

In 1935, the city was renamed Voroshilovgrad in honor of the Soviet political and military figure Kliment Voroshilov.