Olsztyn, city in northern Poland, capital of Olsztyn Province, on the Lyna River. An important railroad and industrial center, the city has a large trade in livestock, grain, and leather; it has plants engaged in sawmilling, papermaking, and the production of stoves. Olsztyn was founded about the middle of the 14th century. With the surrounding region, it became a Polish possession in 1466 and passed to Prussian sovereignty in 1772. The city subsequently became part of the Prussian province of East Prussia and was known by its German name of Allenstein. Following World War II it was transferred to Polish control under the provisions of the Potsdam Conference. Population (1997 estimate) 169,900.