Alexisbad is located about 2 km (1.2 mi) northwest of the Harzgerode town centre on the Bundesstrasse 185 road to Ballenstedt.

It is situated in the valley of the Selke river and its Schwefelbach and Friedenstalbach tributaries, in the lower eastern outskirts of the Harz mountain range, about 310 m (1,020 ft) above sea level.

About 1000, the local Schwabengau counts of Ballenstedt, progenitors of the noble House of Ascania, served as Vogt protectors.

Though the estates were placed under protection by Pope Alexander III in 1179, the monks later resettled to Naumburg and the premises, devastated during the German Peasants' War in 1525, decayed.

The healing properties of the waters were first examined in 1766, however, initial attempts to establish a medical care and spa business were not successful.