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The village was likely established at the end of the 18th century after the massive forest cuts.
Between World War I and World War II, Rytas Elementary School was situated in the village.
Etymology
The name Paąžuolė comes from the word Lithuanian: ąžuolas ('oak tree') and means 'a place under/by oaks'. The village is mentioned as Polish: Poddębie, Poddębe, Russian: Поддембе in the earlier sources (with the same meaning, i. e. Polish: dęby, dębno 'oaks, oak grove'), so it isn't clear Lithuanian or Slavic name is earlier.[3]
^Šimkus, Šarūnas (2023). Varėnos krašto vietovardžių etimologinis žodynas (in Lithuanian). Vilnius: Liutauras Leščinskas. p. 45. ISBN978-609-447-388-3.
