This relict dune, as the highest dune at the seaside of Palanga, is mapped in the large maps since 17th century. The name of Birute hill is linked with a romantic story of priestess Birute, who married to the Grand Duke of Lithuania Kestutis and gave birth to Vytautas, the most famous Lithuanian Grand Duke. In 1989 the archaeologists found the evidences of a pagan sanctuary and observatory, which had existed on the top of Birutė hill in 14th-15th century.
In 1869 a chapel was built there according to the project of architect K. Majer. In 1976 stained-glass windows were arranged in this chapel (author L. Pocius).