Before the arrival of British colonial administration in the late 19th century, the region that is now Lawngtlai was largely part of the unadministered tribal tracts inhabited primarily by the Lai people (historically referred to by outsiders as the Pawi). The area was governed by independent local chieftains who oversaw village clusters and protected their territories.
Following Indian independence, there was a strong movement among the minority tribes of the Lushai Hills (now Mizoram) to protect their distinct cultures and administrative structures. In 1953, the Pawi-Lakher Regional Council was formed under the Sixth Schedule of the Indian Constitution to grant autonomy to the region's indigenous groups.
In 1972, when Mizoram became a Union Territory, this regional council was divided into three distinct autonomous councils. The Lai Autonomous District Council (LADC) was established, and Lawngtlai was chosen as its headquarters. Over the decades, Lawngtlai has evolved from a small village settlement into a bustling town, driven by its dual role as a district headquarters and an autonomous political center.