Lillerød was established in 1890 by the Johansson family who immigrated to Denmark from Sweden. The family created the famous Lillerød basket with the hopes of spreading their love for handmade wooden baskets in Denmark. The inspiration came from using wood to create useful objects for everyday use in a simple and beautiful design.

In 1970, the Johansson family was forced to close their production of the beautiful wooden baskets due to plastic products. In 2016, Lisbeth Kamstrup-Holm and her father re-established Lillerød on the basis of a relation to the Johansson family and knowledge of the fantastic story behind the Lillerød baskets.