Grafendahn was built in 1287 by Conrad of Mursel, who was a Lehnsmann or vassal of the bishops of Speyer and a nephew of Frederick of Dahn (see Altdahn).

In 1339, Count John II of Sponheim purchased all parts of the site from the various parties concerned (including William of Winstein, Conrad Mursel's son-in-law) and thus became the sole owner.

In 1425, the castle defences were strengthened and, in 1437, when the House of Sponheim became extinct on the death of John V, it was transferred by inheritance treaty into the possession of the margraves of Baden.

In 1480 Hans von Trotha, who was already the liegeman of Berwartstein Castle, was also given Grafendahn as a fief by the prince elector, and took full ownership in 1485 through purchase.

In the lower ward (the Unterburg), which is situated on two narrow rock terraces, several chambers, cattle troughs and a well shaft have survived.