The 1220-year-old municipality of Döllstädt was first mentioned in a document from the year 779 together with Tonna. Three buildings dominated the townscape of Döllstädt after the turn of the millennium: the old church, the Cistercian monastery and Steinfurt Castle. 

The village belonged to the Lords of Tullestete until 1212. A fortification with two gates and a gate was preserved until 1777. The present church was rebuilt in 1542. 

On December 15, 1889, Döllstädt was connected to the Gotha - Tennstedt railroad line and on November 25, 1897 to the Erfurt - Langensalza railway line. In 1974, Döllstädt celebrated its 1100th anniversary. 

After 1990, numerous municipal roads were renewed and the village was expanded to include the newly created housing development area "Im Teich". In a relatively short time, 32 terraced houses and 50 detached and semi-detached houses as well as state-subsidized apartments in social housing were built here. Since 1990, several small and medium-sized companies have settled in the Döllstadt industrial estate. Today, the community has 1200 inhabitants.

From 1950 onwards, the former Döllstädter Schloß was used as a state nursing home for the elderly. Since 1990, the nursing home has been run by the Diakonieverein "St. Peter und Paul" Döllstädt e. V. (deaconry association). Since 2001, a new building for 60 old people and people in need of care from our region has offered optimal conditions for a pleasant retirement. 
In recent years, the municipality of Döllstädt has also invested heavily in renovating its daycare center and converting the former municipal administration building into a village community center that is home to clubs and festivities for the local residents.
Döllstädt as a municipality in the center of the administrative community "Fahner Höhe" with very good transport connections by road and rail as well as developed municipal infrastructure is therefore a good location for residential and commercial settlements.