The abbey has a rich history dating back to its legendary founding in 1150 by Marquard von Donnersberg as a double monastery for both monks and nuns.

The monastery faced significant challenges during its history, including severe damage during the Peasants' War in 1525 and abandonment in 1632 due to a Swedish invasion.

Ferdinand Fischler von Treuberg's relative Pedro II of Brazil often visited Holzen, as did Carlo Caputo, apostolic nuncio to the king of Bavaria.

The Church of St. John the Baptist, consecrated in 1710, features a Baroque interior with stucco work by Benedikt Vogel and sculptures by Ehrgott Bernhard Bendl.

In 1927, the Treuberg family sold the monastery buildings to the St. Josef Congregation of Ursberg, which transformed the abbey into a facility offering living and working opportunities for people with disabilities.