The castle was built in 1368 by Count Eberhard V. von Katzenelnbogen to secure the northeastern border of its territory. However, the traditional completion date of 1371 is considered unlikely because of the apparently too short construction time. The surrounding settlement must have existed before the castle, because also in 1368 Emperor Charles IV gave her the city rights, which was associated with the permission to build fortifications and to host a daily weekly market. Nevertheless, the settlement did not develop into a city and was referred to as a "spot" until the 18th century.
In 1536, the castle fell to the house Nassau. After an inheritance division received count William of Nassau-Weilburg 1594 Burgschwalbach and administered from there administrative district. He made the castle his residence. His widow Erika used the castle until 1628 as a widow's residence and had the facility partly repaired. Until 1720, the building housed a Nassau-Weilburg office.
In 1737 repairs would have become necessary again. In view of the high costs, the administration of Nassau-Usingen, to which Burgschwalbach now belonged, decided to let the castle expire. Inventory, wooden components and the roof were therefore auctioned and removed.
In 1817 master carpenter Georg Philipp Schnabel bought the gatehouse. His family opened a restaurant in 1858 at the castle. There is still a restaurant there today.
After battlements had been removed from the ring wall in 2006, the building was first scaffolded to carry out safety measures and investigations. Since 2010, the castle is being renovated.