It is situated on a steep cliff at the southern foot of the Karawanks mountain range, high above Lake Faak, at a height of 788 metres (2,585 ft).

When he had Ekbert captured and arrested at Finkenstein Castle, he was immediately banned by Pope Gregory IX; nevertheless, the prince-bishop was not released until various pressures by Duke Frederick II of Austria and the Salzburg archbishop.

After the extinction of the Carinthian Finkensteins at the beginning of the 14th Century –a cadet branch of the family named Finck von Finckenstein came to prominence in East Prussia, possibly after participating in the Third Crusade–, the ownership fell back to the dukes of Carinthia, held by the House of Habsburg since 1335.

Emperor Frederick III, Duke of Carinthia since 1424, had his consort Eleanor of Portugal brought to safety at Finkenstein, while he was besieged by his brother Archduke Albert VI in Vienna.

[2] Rebuilt several times, the oldest preserved parts of the castle ruins date back to the Romanesque architecture of the 12th century, including the remnants of the keep (Bergfried) on the southeastern corner.