Frohburg castle was first mentioned in documents at the end of the 10th century, the first documentary mention of the settlement itself dates from 1198,[3] and in 1233 it is known as a town (oppidum),[4] although it had no explicit town privileges and was directly ruled by the lord of the castle, which at this time was the burgrave of Altenburg.

[4] Following a recession in the 19th century, the establishment of a calico printing mill in 1883 and the start of lignite mining north of the town helped economic recovery.

The forced labour camp was a branch of the Leipzig-based arms manufacturer, Hugo Schneider AG (HASAG).

The neighbouring community of Streitwald was incorporated into the town in 1973, followed by Greifenhain in 1995, Benndorf in 1997, and Eschefeld, Frauendorf, Roda, Nenkersdorf and Schönau in 1999.

A south-north section of former B 95 connecting Chemnitz and Leipzig, now reclassified as state road S 51, runs through Frohburg.