On June 6, 1870, Thomas Welwood and Charles S. Schlier founded the City of Breslau, named for the town where Schlier was born, Breslau, Germany.(Wellwood Avenue is incorrectly spelled because of a clerk's error in the 1870's.) In addition to residential real estate, Welwood and Schlier encouraged the growth of local manufacturing, especially sewing notions.
The village name was changed to Lindenhurst in 1890 in an effort to quell some of the negative publicity caused by a bitter legal dispute between Welwood and Schlier. The name Lindenhurst was derived by the fact that many German settlers planted Linden seeds, which lined the streets of the bucolic community.
In the 1920's, members of the New York Yankees, including Babe Ruth and Lou Gehrig, played exhibition games in Lindenhurst. In 1923, Lindenhurst became the third and final incorporated village in Babylon Town.