The villages of Gsteig and Feutersoey grew up along the roads over the Col du Pillon and the Sanetsch Pass. During the Middle Ages, a castle was built in the valley to protect and control the passes. The castle is first mentioned in 1458 and today is in ruins. At one time there was a settlement at Ussers Gründ which was destroyed by a landslide. Originally Gsteig was part of the district and parish of Saanen. The village church of St. Theodul was consecrated in 1453. It became a filial church of Saanen in 1500. In the early 16th century, Bern adopted the new faith of the Protestant Reformation, however Gsteig did not convert until 1556.