The village is situated on the western (cut) bank of the river Eder. To the west of the village is the Lotterberg, a volcano that was active in the Miocene and became extinct 7 million years ago. The Eder confluences with the river Fulda just 4.5 km (2.8 mi) downstream at Edermünde.

Wolfershausen was first mentioned in 1061 in a document from the Fulda monastery. The abbot, Widerad von Eppenstein, transferred the land and farm of a gentleman and his wife from Maden to a monastery at Morschen. In this exchange, the towns of Wolfeshuson, Hebel and Heßlar were involved. The gentry of Wolferhausen were liegemen, that is they were noblemen who were obliged to pay a tithe to the Saint Peter's Church in Fritzlar. In 1232 Landgrave Konrad von Thüringen attacked the town of Fritzlar. The knights from Wolfershausen were defending the Heiligenburg Castle, which was destroyed in the landgrave's attack. The Archbishop Siegfried III from Mainz gave the order for the castle to be rebuilt. This decision caused the nobles of Wolfershausen to transfer their allegiance to the Landgrave, which caused them great loss later on (for instance the loss of their castle). In fact, the nobles of Wolfershausen often transferred their loyalty to the side that brought them the most, many times over history.

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