Friedrichstadt was founded in 1621 at the confluence of the Treene and the Eider in North Frisia. In order to get the water of the city under control and to realize a quick settlement, knowledgeable Dutchmen were recruited to build dykes. Since the Christian religious community of the Remonstrants was persecuted in Holland at that time, many Remonstrants settled in Friedrichstadt, as Duke Friedrich III guaranteed the residents freedom of religion here.

Today Friedrichstadt is also known as the Nordic Dutch city thanks to its brick renaissance and canals. The whole of Friedrichstadt is a cultural monument and lives mainly from tourism.