Lützow entered the Prussian Army in 1795 and was present at the decisive defeat of the Prussian forces by the French at Auerstädt (1806). He retired in 1808 and participated in Ferdinand von Schill's abortive popular rising against the French the next year. In 1811 Lützow reentered the Prussian Army. At the outbreak of the Wars of Liberation (1813), he received permission from Gerhard von Scharnhorst (the Prussian chief of staff) to organize a mounted free corps (called the Lützowsche Freikorps), composed mainly of non-Prussian volunteers, to operate behind the French lines. The formation eventually numbered about 3,000 and became popularly known as the Schwarze Schar (“Black Band”) after its uniform, which was a symbol of mourning for enslaved Germany. The armistice of June 4, 1813, caught Lützow's group on the wrong side of the demarcation line, and it was practically annihilated. Reorganizing his unit, he again fought partisan actions, during which he was repeatedly wounded. At Ligny (June 16, 1815) Lützow led the 6th Uhlans in an abortive charge which ended in their being routed by the French cavalry. He was captured, but escaped at Waterloo on June 18. He remained in the Prussian Army after the war.