Around 1361 the Waldstein family built Košťál Castle above Želechovský potok. In 1514 the castle was allegedly deserted; nowadays there are only remains of its ramparts and walls on a wooded hill above a swimming pool. The Gothic Church of St James, dating back to the 14th century, was reconstructed in the Baroque style in 1717.

The village developed quickly a hundred years ago when textile factories were set up. At the present time 1,600 residents live in Košťálov; the local swimming pool ranks among the most beautiful ones and is very popular in summer.