The town is located 33 km to the east of Dresden at the edge of the Upper Lusatian mountain country.

The town remained under the authority of the Bishops of Meissen until 1559 when power was transferred to Augustus, Elector of Saxony, who introduced Protestantism.

However the town was rebuilt on an order of Frederick Augustus I of Saxony in a manner closely following the earlier layout, and this remains to this day.

During the increased tensions of the 1980s between the Western democracies and the Eastern Communist Bloc, Bischofswerda became a base for Soviet SS-12 nuclear missiles.

The Catholic church is named after Saint Benno of Meissen, who is said to have founded Bischofswerda in the 11th century.

[citation needed] The town is situated on the Bundesstraße 6, which connects Dresden and Görlitz at the Polish border.

The Bundesautobahn 4 bypasses the town 6 km north, enabling easy access to Dresden Airport.

[clarification needed] Via Bischofswerda railway station, direct access by rail is possible to Dresden, Görlitz, Zittau as well as to Czech Liberec.