The History of the Municipality is filled with large gaps due to a fire in the town, which caused almost all records to be burnt.[3]
"Nydernsteinach" was first mentioned in a document in 1281.
The Schlüsselberg brothers Eberhard IV and Ultich III held the village of "Nydernsteinach" as a fief of Bamberg and granted it to Eberhard and Heinrich von Plassenberg. The Burgraves received half of the village in 1386. Despite the bishop's objections, Untersteinach remained under the territorial jurisdiction of the Margravial Office of Kulmbach.[3]
In later years, the imperial nobles of the House of Varell ruled in Untersteinach. The last nobleman of the House of Varell was Imperial Baron Georg Adam, Lord of Untersteinach, Guttenberg, Burghaig, and Mayerhof, Lieutenant General and Colonel-in-Chief of His Imperial Majesty, who died in 1765 at his castle in Untersteinach (the site of which now houses the administrative building of the local authority), thus ending the proud line of imperial nobility.
Due to the old military road running through the village, Untersteinach experienced much hardship and many afflictions. The Thirty Years' War was particularly terrible. Reports speak of severe mistreatment of the population. The village and the castle suffered fire damage. Another devastating fire occurred on August 10, 1706. On that day, almost the entire village fell victim to a massive blaze, which caused the church and the documents inside to be destroyed, which is why almost all information about the village come from sorrounding areas.
Untersteinach had already adopted the Lutheran doctrine around 1553.
After World War II, many Catholic refugees came to Untersteinach. In the early postwar years, Catholic services were held in the Protestant parish church of St. Oswald. The Catholic Church of the Visitation of Mary was built in 1957/58 and solemnly consecrated on July 20, 1958.
World War II ended in Untersteinach in April 1945 with the occupation of the town by the 11th US Armored Division.[3]
