The district was not part of Saxony before World War II. It was a part of German Silesia. When most of Silesia was given to Poland after the war, the part of Silesia on the west bank of the Rive Neisse was made part of Saxony.
The Niederschlesischer Oberlausitz district was formed in 1994 by joining the previous districts Niesky and Weißwasser, and most part of the district Görlitz.
The stone wall in the bottom of the coat of arms is the symbol of the Oberlausitz region, with its three tops symbolizing the three districts which were merged together. The linden leaves symbolize the Sorbs slavic minority. The shield above the wall is the old coat of arms of the Prussian province Lower Silesia (Niederschlesien).