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From Wikipedia

Prior to the establishment of the city now known as Lebanon, the town of Georgetown, north of Lexington, was also named "Lebanon" during its first few years of establishment. It was renamed in 1790 in honor of President George Washington.

Present-day Lebanon was established in 1814 and named for the Biblical Lebanon because of its abundant cedar trees. The founding community traces back to the Hardin's Creek Meeting House, built by Presbyterians from Virginia. It was incorporated as a city on January 28, 1815, and became the county seat of Marion County in 1835. Because of its style, architecture, and businesses, Lebanon had the reputation of being Kentucky's Philadelphia and was considered for the site of the state capitol.

In the 19th century, Lebanon was one of the stops along the National Turnpike from Maysville to Nashville. In 1819, Henry Clay and Andrew Jackson met here after having crossed paths on their journeys. Many of its brick homes date from the antebellum period, including Hollyhill and Myrtledene (now a bed and breakfast). Much of Lebanon's downtown business district was recently placed on the National Register of Historic Places.

A branch of the Louisville & Nashville Railroad was built to Lebanon in 1857, but growth of the town was halted by the Civil War. Three battles were fought nearby, and control over the railroad branch passed between Union and Confederate hands several times. After the death of his brother Tom during a local battle, Confederate John Hunt Morgan's cavalry burned the railroad depot, a hotel, and several residences on July 5, 1863, during the Battle of Lebanon.