The originally Gothic building was first a medieval fortified castle, then a fortress, hunting lodge, prison, forestry school and is now a hotel and restaurant.

The first castle on the site was probably built by the lords of Treffurt, who came from Thuringia, as the centre of their small barony in the region around Spangenberg and Morschen.

This road was an important factor in the development of the newly founded settlement below the castle, which was already being referred to as a town (civitas) in 1261.

The brothers, Hermann and Frederick of Spangenberg and Treffurt became robber barons, causing unrest in 1327 in the surrounding Thuringian countryside.

Finally Lord Hermann IX sold the castle, title and estate of Spangenberg in 1350[1] to the Hessian landgrave, Hesse II for 8,000 silver marks, a hefty sum at that time even for a territorial prince.

The castle was now used for over two centuries by the Hessian landgraves as a residenz and hunting lodge: Architecturally these years were of great significance for the entire site.

The castle was considered to be so safe that, in the 15th century, large quantities of money and archives belonging to the landgrave were kept and guarded here.

The mighty earth rampart with its casemates on the main attack axis on the northeastern side was probably built under Landgrave Philip.

The system of underground passages laid out at this time to serve the defence of the new fortress works has largely survived to this day, but is not however open to the public.

Because the fortifications had been strengthened, the castle remained in Hessian hands in the Thirty Years' War during the reign of Landgravine Amalie Elisabeth (1637–1650).

The old castle was no longer valued in the Baroque era as a royal residence, but was still maintained as a fortress and used to accommodate invalids (war wounded).

The commitment of Spangenberg's townsfolk to the castle finally led to its reconstruction by the State of Hesse in the 1950s under the direction of the Commissioner of Town Planning, Dr. Textor.

Although the interior of the palace had been completely destroyed in the war, the outer shape of the building hints at the importance of the fortress had in earlier times.

In the former audience hall, a putti frieze was to be seen; in addition Gothic fireplaces and grand stoves were located in the other rooms, of which only fragments remain.

Following the previous use of the castle as a hunting lodge, a royal country residence, a prison and a forestry school was added another role.

The former managing director of the "Castles and Palaces of Hesse", Johannes Lill, explained the purpose of this measure "You did not want to restore the monuments of the past and then leave them to die in beauty again.