Besides the main town, which bears the same name as the whole municipality, there are sixteen outlying centres named Alchen, Bottenberg, Bühl, Büschergrund, Dirlenbach, Heisberg, Hohenhain, Lindenberg, Mausbach, Niederheuslingen, Niederholzklau, Niederndorf, Oberfischbach, Oberheuslingen, Oberholzklau and Plittershagen.

Among these, the main town is the biggest, and the next in size after that is Büschergrund, which is itself further subdivided into four parts, named Büschen, Eichen, Anstoß and Bockseifen.

Into it the seventeen formerly self-standing municipalities of Alchen, Bottenberg, Bühl, Büschergrund, Dirlenbach, Freudenberg, Heisberg, Hohenhain, Lindenberg, Mausbach, Niederheuslingen, Niederholzklau, Niederndorf, Oberfischbach, Oberheuslingen, Oberholzklau and Plittershagen were merged into one.

The castle was founded over the Weibe Valley together with a settlement by the Counts of Nassau as a corner post of their domain.

Count Johann IV of Nassau, Vianden and Diez gave the Freudenberg townsfolk their "freedom rights" on 7 November 1456.

The historic town core is even still called Alter Flecken (alt means "old"; –er is a grammatical inflection).

Prince Johann Moritz von Nassau-Siegen built the town anew, using much the same layout, planned in 1540, as had stood before the fire.

Its composition is listed below: The charge in Freudenberg's civic coat of arms is variously interpreted as a castle or a town gate.

The Technical Museum (Technikmuseum) has on display exhibits relating to trade and industrial history from the region.

The Alter Flecken was included in the Kulturatlas des Landes Nordrhein-Westfalen (Cultural Atlas of the State of North Rhine-Westphalia) as a "Building monument of international importance".