It was built as a thatched hut above the eye of the needle in 1778 for Duchess Luise's name day. Goethe, Duke Carl August and gentlemen of the court society performed a short play to mark the inauguration. The Duke later had the "Luisenkloster" converted into a shingle-roofed and bark-clad wooden cottage. Still close to the city palace but already outside the city, the bark cottage became a popular place for him to stay overnight. It was renovated and altered several times. It was restored to its original oval shape during a reconstruction around 1960.