In 1270 it received the right to hold a market from Louis II, Duke of Bavaria as recorded in an Urbarium.

It was a commercial center due to its location on the Vils and Lauterach rivers, as well as the site of one of the largest hammer works in that era.

In 1505, Schmidmühlen was incorporated along with other properties of Bavarian Nordgau in the newly created Duchy of Pfalz-Neuburg.

The border of the Upper Palatinate was three kilometers to the north, which always led to clashes, especially with the powerful city of Amberg.

This brought a reorientation in the north, which had started 100 years ago with the construction of the railway line Amberg-Schmidmühlen (1910-1985, now part of the Five Rivers Cycle Route).