The municipality lies in the northernmost part of the Hunsrück between the Baybach and Ehrbach valleys to the north and south, and the Rhine and the Moselle in the east and west.

Barrows in Schorfeld, Steinmelt, Lampenheck and Scheidwald bear witness to early human habitation in the Gondershausen area in Hallstatt times (1000-400 BC).

On 13 June 897, Gondershausen had its first documentary mention as Guntereshusen when King Arnulf's donations were confirmed by his son Zwentibold.

In 1200, St. Maximin's Abbey relinquished its claim to Gondershausen and ownership then passed to the Counts Palatine.

On 7 May 1285, Guntirshusen passed to Conrat zu Schonecke, whereupon the landlords at Waldeck and Schöneck once again divided up their holdings.

In 1399, Wynant von Waldeck was mentioned as having been made the village's Vogt (roughly “reeve”).

In 1443, Saint Anthony's Church (St. Antonius Kirche) in Niedergondershausen (“Lower Gondershausen”) was mentioned for the first time.

An old Gondershausen court seal from 1466 stands as the earliest reference to Saint Servatius as the parish patron.

Also, near the municipality itself, a USAAF bomber was shot down and the crew was forced to make an emergency landing.

[3] On 11 April 1973, Gondershausen was officially recognized as a recreation resort (Erholungsort) by the State Technical Committee for Spas (Landesfachausschuß für Kurorte).

[1] The German blazon reads: In gespaltenem Schild vorne in Schwarz ein rotbewehrter, -gezungter und -gekrönter goldener Löwe, hinten in Silber ein schwarzer Bischofsstab belegt mit einer roten Mitra.

The charge on the dexter (armsbearer's right, viewer's left) side, the Palatine Lion, stands for the village's former allegiance to the Counts Palatine, while the charges on the sinister (armsbearer's left, viewer's right) side, a bishop's staff and a mitre, are a holy bishop's attributes, as shown on a court seal on a 1466 document from Gontershusen.

[6] The following are listed buildings or sites in Rhineland-Palatinate’s Directory of Cultural Monuments:[7] There has been a music club since 1970 (Musikverein Gondershausen), and the fire brigade was founded in 1930.