Steinegg was first mentioned in a document in 1357. In the south-west wing of today's building, parts of the original castle from the 13th century are integrated, which was built by the Lords of Steinegg. It burned down between 1517 and 1520. From 1584 to 1798 it was the seat of the Obervogte in Zurich. 1624–1626 the south-east wing and the roundel were built.
In 1886–1887, Alfred Ziegler-Benker (1842–1890, son of Paul Carl Eduard Ziegler and brother-in-law of Conrad Ferdinand Meyer) had the castle redesigned into a Neo-Renaissance style palace by the architect Christian Friedrich Hahn. Ziegler ran an agricultural estate from the newly designed castle.
In 1901 the doctor Dr. Johann Paul Maag (1865–?) At Steinegg Castle later became a well-known naturopathic and fasting clinic, which was later continued by the Association for Public Health. Also in 1901, the Swiss politician Victor Fehr (1846–1938) took over the farm belonging to the castle.
In 2003 the castle hotel and the associated spa business went bankrupt. In an attempt to revive the hotel business, both a rescue company failed in 2005 and the Dutch investor W.J.K. Herwegh Vonk 2006.
In October of the same year the property was bought by the English couple James Rennie and Yvonne Thom from Singapore as a private residence. In the years that followed, they undertook a comprehensive renovation of the castle with historical preservation and archaeological support. In 2009, the northern hotel extension from 1986 as well as the southeastern kitchen extension and the winter garden, both from the 19th century, were demolished.