Creation of such specific unit was first proposed by President of Lithuania, Algirdas Brazauskas, during his speech in Polish parliament (Sejm) in 1995. The unit was officially created on March 3 1997 when a specific agreement was reached by Polish Ministry of Foreign Affairs and its Lithuanian counterpart. On December 31 1998 the battalion reached operational readiness.
During a visit of the President of Poland Aleksander Kwaśniewski to Lithuania on April 14 1999, LITPOLBAT was presented with two military standards, Polish and Lithuanian one, financed by presidents of both countries. In 2000, LITPOLBAT was identified as a component of the Rapid reaction force formed by the European Union.
In 1999 Poland joined NATO and has since then been supporting Lithuanian entry into that organization; Lithuania joined NATO in 2004. On February 5 2001 a new agreement of cooperation on the issue of defence was signed between the Government of Poland and the Government of Lithuania reflecting their new NATO-related closer cooperation.
In 2007 the battalion was disbanded.
Polish units of LITPOLBAT came from 4 Suwałki Armored Cavalary Brigade named after General Zygmunt Podhorski in Orzysz, part of Warmia–Mazury Polish 15th Mechanized Division named after king of Poland and Lithuania, Jogaila. Lithuanian units come from Mechanized Infantry Battalion in Alytus, named after Great Lithuanian Duchess Birutė, part of "Iron Wolf" Mechanized Infantry Division in Vilnius.
Nearly 800 soldiers served in the battalion (435 Poles and 351 Lithuanians). NATO press release from 2004 gave the strength of 784. The key staff positions are taken up by rotation. The commander of the unit served for 3 years.
The bilaterally staffed Battalion Headquarters were located in Orzysz, Poland.