The principality was established at the death of Frederick V, Burgrave of Nuremberg, on 21 January 1398, when his lands were partitioned between his two sons.

Thereafter Ansbach was held by cadet branches of the House of Hohenzollern, and its rulers were commonly called Margraves of Brandenburg-Ansbach.

On 2 December 1791, the reigning Prince and Margrave of Ansbach, Charles Alexander, who had also succeeded to Bayreuth, sold the sovereignty of his principalities to King Frederick William II of Prussia.

The Margrave was middle-aged and childless, and Frederick William was his kinsman as the head of the House of Hohenzollern.

The Margrave moved to England with his English second wife.