The medieval Drakenburg (Low German for Dragon Castle), which gave the town its name, was a castle complex located directly on the Weser River and served as a barrier and toll fortification to control shipping and a river crossing. Virtually nothing is known about its appearance. It was owned by the Counts of Wölpe, who issued several charters here from 1277 onwards. After the extinction of the Wölpe countial line in 1302, Drakenburg was owned by the Counts of Hoya as a fief of the Duchy of Brunswick-Lüneburg. The castle was probably built as early as the 12th century.
It was destroyed in the 14th century during the Mandelsloh Feud, probably in 1381. The extent to which the castle was subsequently rebuilt is unknown. The castle is mentioned in sources until around 1450. There is no clear evidence of its continued existence after 1450. It is highly unlikely that the castle still existed at the time of the Battle of Drakenburg in 1547. The few mentions of the castle in sources from the period between 1390 and 1450 and its quiet "disappearance" speak against any particular significance after its destruction during the Mandelsloh Feud. In any case, the castle no longer existed at the time of the Thirty Years' War.
The municipality of Drakenburg is a member of the Heemsen collective municipality in the Nienburg/Weser district of Lower Saxony. It describes itself as a village. Old names for the place were Demeborg in 1025, Drakenburg in 1227, Drakenburg in 1288, and Drakenburch in 1294. The word "Drake" may be derived from "dragon." However, since dragons rarely appear in ancient names, it is more likely that it refers to the ancient first name "thraka" – "fight, crush, strength" – or to "dirty" in the sense of "swamp, mire." It most likely comes from the Middle German "Drake, Dragge" – "anchor, clamp." This would mean that the castle could be understood as an "anchor castle" or "clamp castle."