The stone fortress was constructed on the banks of the Põltsamaa River already in 1272. Later on (1570–1578) the fortress was the residence of Livonia's King Magnus. Repeatedly pillaged, the castle was rebuilt by Woldemar Johann von Lauw. In the 18th century the fortress became a grand rococo-style palace. The castle and the church burnt down in 1941. Only the church was restored in 1952. The castle remained in ruins, waiting for its time.

The complex is open again from the summer of 2023. The castle tower, convent building, and gate building are open to visitors, where you can find a magnificent exposition introducing the history of the castle. From the observation platform in the castle tower, a view of the city opens up to those who bought the ticket. Craft workshops and a restaurant operate in the castle yard.