The castle was built in 1728 by Anna-Maria von Hutten-Stolzenberg zu Steinbach, initially on one floor with a mansard roof. Her father-in-law Helfrich von Kroneck had previously had a country estate on the site, which he had built in 1673/74. In 1766 it was acquired by the Palatinate Privy Council from Kronenberg. Around 1800 the western main wing and the southern wing were increased. Around 1810 it was bought by the Austrian General von Degenfeld-Schomburg, from whom it got its current name.
After his death it was first sold to a farmer before the municipality of Groß-Karben acquired the castle in 1868. In January 2013, the Degenfeld'sche Schloss was sold to four private individuals for 350,000 euros. The relatively low price can be explained by the fact that renovation costs of two million euros had to be raised.