The district, which has 694 inhabitants (as at 31.12.2019), is located 6.5 km from the spa town of Bad Langensalza. Nägelstedt was incorporated on 01.07.1993. The village was first mentioned as "Negelstete" in 977. Nägelstedt lies at the gateway to the Unstrut Valley.

The village has two churches. In its center stands the Schieferhof. It has a semi-circular forecourt which was used for defensive purposes. The Schieferhof used to be a noble residence.

At the end of the village to the east is the Stiftsgut. It was formerly a possession of the Teutonic Knights. During the Peasants' War, this estate was thoroughly plundered by the people of Langensalza on April 29, 1525.