The municipality lies in the Hunsrück on a narrow ridge (330 m above sea level) bordered in the north by the Niederbach (brook) and in the south by the Engehöller Tal (dale).

A broad belt of forest in the west forms the link between the Damscheider Land – the village's local area – and the Hunsrück plateau.

Nevertheless, it is known that humans had settled here earlier than the Franks, for the foundations of Roman buildings and remnants of a water supply line have been unearthed.

Indeed, Damscheid's oldest and at the same time most striking building work is the square churchtower with its pointed helm roof.

It bears witness to Damscheid's having had a role in the Hunsrück's power structures long before the first documentary mention.

Since then, a religious service has been held each year in the middle of the forest to commemorate the old pilgrimage church that once stood here, which was consecrated to Saint Aldegonde, after whom the Aldegundesmarkt (market) is also named.

The charge on the dexter (armsbearer's right, viewer's left) side, the spruce tree, refers to the municipality's great wealth of woodland, while the charge on the sinister (armsbearer's left, viewer's right) side, the gridiron, is Saint Lawrence's attribute, thus representing the municipality's patron saint.

[4] The following are listed buildings or sites in Rhineland-Palatinate’s Directory of Cultural Monuments: Owing to its location between the Rhine valley and the Hunsrück's wooded heights, Damscheid offers interesting hiking opportunities.

From the cultivated landscape of the Rhine valley with its sloped vineyards to the meadows and woods on the village's western edge, there are well signposted hiking trails.