The first archaeological evidence of an early fortification on the "Burgberg" dates back to the 10th century. The castle was probably built around 1100, first mentioned in 1109 and documented in 1142. In 1154, the castle was referred to as "castellum dicto Stein," which refers to the castle's founders, the Lords of Stein.
The palace and keep were probably built around 1220 to 1230, and in 1250, the Imperial Ministerial Heinrich von Stein, the progenitor of the later Hilpoltstein family with good relations with the Hohenstaufen emperors, had the castle further expanded. Heinrich von Stein was Imperial Butigler (cupbearer) of Nuremberg and was responsible for the imperial estates in Franconia from 1254 to 1265.
Heinrich von Stein handed the castle over to his son, Hilpolt I, and after the death of Hilpolt IV in 1385, the castle passed to the Wittelsbach dynasty. The estates then passed to the Dukes of Bavaria-Landshut, and in 1505 to the Duchy of Palatinate-Neuburg, who appointed stewards.
Duchess Maria Dorothea, daughter of Christoph von Württemberg and widow of Duke Ottheinrich II, who resided in the castle as a widow's residence from 1606 onwards, significantly expanded the castle. After Maria Dorothea's death in 1639, the castle remained abandoned, was sold to private individuals in 1793, and used as a quarry. In 1972, the castle came into the possession of the Roth district, which commissioned extensive security measures starting in 1989.