The colony of Friedrichsgnade was founded on May 29, 1753 by King Frederick II of Prussia.

"[4] From 1949 to 1990, like the rest of the borough of Köpenick, it was part of East Berlin.

Located in the south-eastern suburb of Berlin, Friedrichshagen borders with the Brandenburger municipalities of Hoppegarten (in Märkisch-Oderland district), and Schöneiche (in Oder-Spree).

The residential area is surrounded in north by a big portion of the Berliner Stadtforst (city forest), and in south by the river Müggelspree (tributary of the Spree), and by the western side of Müggelsee, the biggest lake in Berlin.

The line 88, not operated by BVG and partially separated from the citizen network, connects Friedrichshagen station to Schöneiche and Rüdersdorf.