Kostroma was founded in 1152 by Yury Dolgorukiy during his war tour into the lands of the Kazan Bulgars. Multiple interpretations of the city's name exist. Some historians say that the word's root lies in the Finnish kostrum or fortress (the area was once inhabited by Finno-Ugric tribes.) Others tie the name to a pagan rite. A holiday akin to Shrove-tide was locally known as Kostroma.
During the Tartar-Mongol invasion, the city was pillaged and burned. In 1272, the citizens of Kostroma defeated a band of Tartar levy collectors near the Holy Lake, pushing them into the water, the city also suffered during the struggle between Moscow and Tver' for the title of Grand Principality. In the 15th century, Kostroma thrice burned down to the ground. From the so-called period of discord comes to us the story of Ivan Susanin's heroic deed. In 1613, Mikhail Romanov was hiding from the Poles in the Ipat'yevskiy monastery. Ivan Susanin saved the ascendant dynasty by leading the Poles into the woods.
The 17th century was a time of Kostroma's bloom. It became an affluent city of merchants and craftsmen. Especially famous for the mastery of their professions were its builders, icon painters, tanners, smiths, silversmiths, and canvas makers. In 1778, Kostroma became a provincial capital, which led to the construction of the government buildings that form the city's central square. Today Kostroma is a provincial town, but it still has the charm of a Russian merchant city.