Until 1645 Knäred was a border town between Sweden and Denmark. In 1613 the village became widely known for the peace that ended the Kalmar war. The peace negotiations were held in Sjöared close to the border of Småland. At that place a memory stone now stands, erected by Halland’s museum in 1925. For the young king Gustav II Adolf it was a tough peace. The Danes demanded a scathing large ransom of one million riksdalers for the Älvsborg fortification.