The Falkenstein lies southeast of the small town of Tambach-Dietharz in Schmalwasser bottom (Schmalwassergrund) and is the most important rock formation in the Thuringian Forest in central Germany. It consists of porphyry (rhyolite and andesite). On the valley side the crags are high. Because of its situation on the side of a hill (the uphill side has a height of about ) it appears most striking when one stands immediately in front of it.