Until 1854, Laboe was obliged to use the water mill in Lutterbek. After this obligation to use the mill was lifted and freedom of trade was introduced in 1869, the first windmill was built in Laboe. It was built in 1872 as a Dutch windmill by the mill builder Johann Hinrich Matz for the master miller Martin Mertz. In 1879 it was sold to the master miller Hinnerk Thiessen, who sold the mill to the master miller Theodor Petersen in 1897 and leased it from him shortly afterwards for 5 years. From 1902, the mill was run by Theodor's son, Richard Petersen, and burned down in 1904.
The second mill, a Dutch windmill from 1857 from the Ornum estate near Missunde on the Schlei, was demolished in 1906, brought to Laboe by ship and rebuilt on the site of the first mill. It was burned down on orders during the First World War.
In the years after the First World War, miller Willi Thiessen bought back the site of the old windmill. The new substructure was built by local craftsmen from the remains of the Stosch and Jägersberg fortresses. The superstructure comes from the mill in Demühlen on the Russee, which was built in 1867 and was due to be shut down. It was dismantled in Demühlen and transported to Laboe by horse-drawn cart and rebuilt by 1923. Operations ceased in 1964 and the mill was converted into a restaurant in 1967. Today it belongs to the old people's and nursing home on Mühlenstraße.