The Church St. Margarethen with its striking bell tower and the Old town of Kahla are located on a 700 x 25 meter sandstone plateau, on which a mighty town castle stood in the Middle Ages. The walls of the ancient complex can still be visited today. Today's church was rebuilt in stages on the Romanesque remains of the castle and the old church. After extensive repair work in the 18th century and after the Second World War, the church finally took on its present form.

A special feature of the church is the late medieval Four-bell peal. All the bells, which date from 1415 to 1516, have survived the passage of time and are preserved in their original condition. The oldest element in the church is the Baptismal font, probably from the 12th century. Worth seeing are a Renaissance pulpit from the 16th century and a Late Renaissance pulpit from the 17th century.

One attached to the church Memorial plaque recalls the sermon Martin Luthers in the church on August 23, 1524. He was on his way from Wittenberg to Orlamünde for the Iconoclasts under the leadership of his former professor colleague and opponent Karlstadt. The citizens of Kahla, who at the time were in agreement with the radical Iconoclasts sympathizers are said to have placed a broken crucifix on the steps to the church in protest to provoke Luther. Luther, however, climbed over it without a word and, according to tradition, did not mention the incident in his subsequent sermon. The townspeople were all the more angry about this.

Another Bronze plaque honors Johann Walter, Luther's friend and advisor and „cantor of the Reformation“. He was born in Kahla in 1496 and baptized in the town church. His work as a musician contributed significantly to the spread of the ideas of the Reformation. A new organ is to create a „sounding monument“ to him and replace the old organ from the 18th century.