Biberschlag was first mentioned in 1317 as "zu den Biberslage". However, its name does not derive from the animal beaver, but is a derivation of the Celtic "bibar" and means "quick", "lively", which we still know in our language as "bibbern". It is possibly the name of a beaver tree on the border between the Henneberg and Hessberg regions.

In 1662, Ernst the Pious had the church built using stones and parts of the former castle and a chapel from Engenstein. The newly built church in Biberschlag was consecrated at Easter 1663. In 1781, the tower was added on the west side and in 1819 the church was extended to include the chancel, the organ loft and the sacristy. The church stands on a small hill in the village to the north and appears to be a self-contained building.

Of the three bells in the tower, the bronze bell cast in Coburg dates from 1740 with the inscription "Bekehret euch zu mir" (Zechariah 1:3), while the other two steel bells were purchased after the war in 1951. All of the furnishings, such as the pulpit, baptismal font and crucifix on a wooden post on the north-east side, date from the time of construction and reveal the Baroque style. The winged altar is the work of the artist Friedrich Popp (1905-1998) from Ebersdorf near Lobenstein. It shows Jesus and the disciples at the Last Supper as well as a symbolism of the Lamb of God. The reliefs in the pulpit fields, which show the four evangelists Matthew, Mark, Luke and John as well as a figure of Moses, were also created by Popp. The artist is considered to be self-taught and created his works under the strong influence of Ernst Barlach.