The Swedish flag, which is still associated with a unique custom today, goes back to the year 1634 according to oral tradition.

It is said that when the Swedes invaded Wallenfels during the Thirty Years' War, the militia defended the Lower Gate.

Many of them are said to have died, but a Swedish flag was captured, after which it was hidden under the Schwedenbrücke (Sweden Bridge).

The version favoured by the town's mayor is that Wallenfels’ name comes from the noble family "von Waldenfels".

The family owned Waldenfels castle which was located on a hill north of the town.