The village mill is located on the left bank of the Unstrut and is also known as the oil mill because of its trade. It is located at Höngedaer Straße 14 and the branch canal from the mill arm to the Unstrut has been converted into a fish ladder in recent years.

In 1258, Hugo and Johannes de Widense, citizens of Mühlhausen, sell 13 hooves of land, a mill and a mill site in and outside Bollstedt to Volkenroda Monastery for 154 marks of silver with the approval of the council.

In 1824, the mill has two grinding gears and one oil gear, the gradient is 1 ¼ cubit 2 inches (0.75 meters). Carl Eisenhardt is the owner of the village mill in 1864, three water wheels are in use and a new marker post is to be installed. Alfred Tautenhahn is named as miller at the Bollstedt mill from 1887 to 1888.

The industrial-style mill building is built in 1905. In 1923, Paul Hirschfeld is the owner of the Chr. Eisenhardt company in the Bollstedt mill. According to the water book entry from 1924, there are two undershot water wheels, each with a diameter of 4.50 meters and a clearance of 1.60 meters. There have been two turbines in the mill since 1926. These are adjustable shaft Francis turbines with horizontal bearings. Together they have a rated output of 30 KW. In 1991, the 20 kW turbine was put back into operation and in 1998/99, a 10 kW turbine taken over from the Horsmar mill was put into operation. These turbines are still used to generate electricity today. The mill was still in operation until the 1960s. The grinder was still in place in the 1970s. Due to the dry summers of 2018 and 2019 and the resulting low water level of the Unstrut and its millrace, the remaining marker pile (also known as the safety pile) in front of the Bollstedt mill became visible again for a few days.