The town is situated within the Prignitz historical region in the northwest of Brandenburg, roughly halfway between Berlin and Hamburg.

The townscape is marked by the large St Nicholas Church of the Holy Blood and several timber framed houses.

The town became a pilgrimage destination after being burned down on 15 August 1383 during a raid by the Mecklenburg captain and robber baron Heinrich von Bülow against the Bishopric of Havelberg.

Reformers like Jan Hus and Nicholas of Cusa later discouraged pilgrimage to Wilsnack, questioning the nature of these wonder hosts and suspecting fraud.

Numerous pilgrims, among them Elector Frederick II of Brandenburg went to the rebuilt town to see the miraculous hosts; their revenues enabled the citizens to construct the large St Nicholas Church for their worship, a larger building than otherwise needed in the parish.