The town (which was completely destroyed by fire in the 1800s) is home to the ruin of Dahlen Castle, which was commandeered as a temporary headquarters of King Frederick the Great of Prussia during negotiations for the so-called Hubertusburg Peace Settlement which had to be signed in Dahlen as the Prussians had taken all the furniture as war booty from Schloss Hubertusburg.

Population on 31 January 2012 The history of Dahlen can be traced back to around 1188 A.D, where it is first mentioned as a town along the old trading route Via Regia.

However, its location allowed economic recovery where traders passed through and the town had bounced back from these disasters.

Here, the Kings of Saxony would stop and rest on their way to the hunting lodge, baroque castle Schloss Hubertusburg in Wermsdorf where there is no rail link.

Today the castle, owned since the 1990s by the town, is being maintained to a limited extent as a ruin by a group of preservationists.