The municipality lies on the upper Nahe between the Westrich, an historic region that encompasses areas in both Germany and France, and the Hunsrück.

Frauenberg borders in the south on Reichenbach, in the west on Sonnenberg-Winnenberg, in the north on Idar-Oberstein and in the east on the Baumholder military reserve.

In early historical times, a road from Ausweiler – a now vanished village that was evacuated to make way for the military reserve in 1937 – passed by the Frauenburg (castle) and through the Nahe, running by way of Oberbrombach, Siesbach and Allenbach to the Moselle.

On the Nahekopf (a hill overlooking Frauenberg) once stood a Celtic ringwall, and it is said that the castle itself was built on the ruins of a Roman fort.

It was in this year that Countess Loretta (or Lauretta) von Sponheim moved into the Frauenburg; the castle served her as a widow's seat.

The Frauenburg was thus forsaken and left to fall into ruin, having lost its military importance with territorial changes and the rise of firearms, serving thereafter only as a refuge where the local people could flee and seek shelter in times of war.

The Niederbrombach church book mentioned in 1673 that French soldiers had attacked the castle, where inhabitants of surrounding villages had sought refuge.

The government required that both new villages be built halfway up the slopes at their respective locations, to forestall any threat from flooding such as that that had destroyed Tal-Frauenberg.

After the First World War, electricity came to Frauenberg, allowing many agate, gem and diamond cutters to set up their workshops at home.

This owes itself mainly to relatively strong activity in the building sector beginning in 1972 and the municipality's favourable location only 7 km from Idar-Oberstein.

[6] The following are listed buildings or sites in Rhineland-Palatinate’s Directory of Cultural Monuments:[7] An earlier version of this article falsely identified this Frauenburg with that built by Sophie of Brabant.

The jewellery industry is still an important sector of the municipality's economy, subject though it may be to structural changes to which small and family-run operations have fallen victim.

The loss of a great deal of farmland to the military reserve in the time of the Third Reich and the rather vast proportion of the municipal area (roughly 65%) covered by forest have not favoured agriculture.