The history of the city begins with the construction of the now-ruined castle by Graf Siegfried of Luxembourg in 964. It received its town charter in 1291. The city has a bell foundry, the Glockengießerei Mabilion, which has been in operation since the 1770s, and as of 2003 the only one in Germany that makes bronze bells.
The area around Saarburg is noted for the cultivation of Riesling grapes.