The history of Vitebsk is rooted in deep antiquity. According to urban legend, recorded in later chronicles, the city was founded by Princess Olga of Kiev in 974. However, according to a number of historians, this date is disputed, and a more probable year of foundation may be 947. The first reliable chronicle mention of Vitebsk dates back to 1021, when Prince Yaroslav the Wise transferred the city to the Polotsk Prince Bryachislav Izyaslavich. Archaeological finds confirm that settlements of the Slavic Krivich tribes existed as early as the 9th–10th centuries at the confluence of the Western Dvina and Vitba rivers, from which the city received its name.
Early Vitebsk owed its growth and development primarily to its strategic geographical position. The city was an important point on the famous trade route "from the Varangians to the Greeks", which connected Scandinavia with the Byzantine Empire. This contributed to the transformation of Vitebsk into a significant centre of trade and craftsmanship. Politically, the city was initially part of the Polotsk Principality, and in the 12th century, it became the capital of the independent Vitebsk Principality. In 1320, following a dynastic marriage, the city became part of the Grand Duchy of Lithuania, which determined its history for several centuries.
The city's economy was built on trade and developed crafts. Merchants and artisans lived in the settlements, while the princely residence was located on Castle Hill. A most important milestone in the history of Vitebsk was receiving Magdeburg Rights in 1597 from King Sigismund III. This right granted the city self-government through an elected magistrate, the right to its own coat of arms, seal, and the holding of fairs, which significantly accelerated its economic and social development. A town hall was built in the city, becoming a symbol of its independence. Already in the 12th century, one of the first stone temples in the territory of Belarus was erected in Vitebsk — the Annunciation Church, which served not only as a spiritual but also as a public centre.