Elsterberg is situated in a deep valley, which begins in the neighbouring town of Greiz, and is surrounded by dense forests.

Elsterberg is situated directly at the river White Elster and belongs to the political area of the free state of Saxony.

These castle buildings were situated on the rocks of Weßnitz and belonged to the Knight Ritter Rayer von Elsterberg, who called his mansion Elsterburg.

Originally there was no thought of founding this city, however, when 36 close villages came to Elsterberg in the purpose of starting their trade there, market rights were needed.

The small town of Elsterberg remained exempt from air raids, except a few unexploded bombs, during World War II.

All factories in Elsterberg were expropriated, industrial plants and large estates were sometimes even violently confiscated, the machinery was dismantled and carried off to the Soviet Union and companies were forced to nationalization.

The "spinnable fiber of Elsterberg" remained internationally demanded, despite its reduced staff due to modernisation processes.

The historic section of the town was renovated, the "Waldbad" (forest pool) was reconstructed, a bypass was built, historic structures of buildings were renewed with great attention to the detail, the "Bürgerkeller" (town hall) redesigned and all other parts of the city carefully considered.