Krautheim (East Franconian: Graude) is a town in the Hohenlohe district of Baden-Württemberg, in south central Germany.

Krautheim is located at the northernmost point of the Jagst river, at elevation 210–420 metres (690–1,380 ft), in southern Germany.

The massive castle keep, with its height of 30 metres (98 ft), gives a comprehensive view into the Jagst valley and the surrounding landscape.

At the time, there was a merger of the formerly independent municipalities of Baden Krautheim, Gommersdorf, Horrenbach, Klepsau, Neunstetten, Oberndorf and the Württemberg-based communities of Altkrautheim, Ober- und Unterginsbach together.

The current twelve stripes, of black and silver shield, go back to the arms of the former local nobility, and from them are the flag colors derived.

Today the nearest railway stations are located in Möckmühl, Schwäbisch Hall Hessental, Bad Mergentheim and Osterburken.

In Krautheim are also the company Wöhrle (metal goods factory) and Dometic Seitz (supplier of caravan and mobile home owner).