The hilltop castle was built in the 12th century to protect the mining industry and as an official residence in the sphere of power of the Margraves of Meissen and is located directly on the western edge of the town centre of Dippoldiswalde on a mountain spur above the Weißeritz valley. To the east of the castle is the Dippoldiswalde town church.
Today the castle houses the Dippoldiswalde district court and since August 2018 the Museum for Medieval Mining in the Erzgebirge (MiBERZ). The building fabric of the exhibition rooms and the cellars below are among the oldest parts of the castle.