The high medieval castle of Lobenstein lies above the center of the town on the right side of the river Lemnitz on a mountain dome.

During the Thirty Years War the castle played a small role, when, in 1632, imperial troops stormed the fortress then occupied by Sweden.

At 9:00 o'clock Emperor Napoleon I. left Kronach in Bavaria, where he had he visited the fortress and strengthened it with its own and allied Bavarian troops to have a retreat in case of defeat by Prussia.

A citizen of Lobenstein, town clerk Christian Gottlieb Reichard, was known as far as Paris for his extraordinary geographic knowledge.

From 1868, healing earth extracted from the nearby high moor and an iron mineral spring brought about the development of a spa in Lobenstein.

In the cemetery of Lobenstein a wooden cross commemorates a concentration camp prisoner who was shot dead by SS men during a death march on the Gallenberg.

In the spa park, a memorial with a sculpture "Mourning Mother" by a Polish artist commemorates all victims of fascism of Bad Lobenstein.

[6] Since March 21, 2005, the city officially bears the name "Bad Lobenstein", making it the twelfth spa town in Thuringia.

It is believed that emperor Ludwig the Bavarian, who lived from 1328 to 1347 announced "Praise the stone" as he had lost and found his favourite dog in this region during hunting for deer.

In memory of this event, the place received the name Lobenstein and carried from now on the head of a bracke in its coat of arms.