The castle on the easily defended Elbe slope was first mentioned in 1182. It was expanded especially under Duke John VI. A stately castle was built in the Renaissance style. It was built predominantly from brick and had numerous outbuildings, such as the kitchen house, the brewing and baking house, the gatehouse and a horse stable. A castle church was also built in 1595 on the occasion of the Duke's safe return from the Turkish war. However, it did not last long. Because here a fire broke out on January 29, 1616, which spread to the wing of the castle, which housed the premises of the rulers, and destroyed a large part of the castle grounds. Only a few rooms remained habitable.
Until his death in 1619, Duke Franz II still lived in the intact part of the building. His successor, Duke August, then moved his residence to Ratzeburg and only the Duchess Maria used the castle until 1626. At times, the castle fell under the Danish occupation. In 1656 it was badly damaged by Imperial artillery fire. A new building after the end of the war was considered and planned, but was not implemented.
In 1708 the building, now known as the castle, was built. It has been home to the city administration of Lauenburg / Elbe since the 1920s.