The name of the town is said to come from the brown iron ore and pyrolusite which was mined in the region periodically from 1478 until 1942 (The German word for iron is Eisen, resulting in the town name "Eisenbach").

Eisenbach was once known for its strong watchmaking industry, as traditional German cuckoo clocks were invented in the black forest region of South-West Germany.

The high level of employment in the manufacturing sector is considered unusual in the Black Forest region of Germany, which is more reliant on tourism as a whole.

Eisenbach is designated as an 'Air Spa' or 'Luftkurot', which is a designation German municipalities judged to have clean enough air can receive, and can use the status to charge guests with an additional health resort tax.

Tourism in the municipality forms a significant part of its economy.