Between 500 and 700 AD clearings were made in the area of today's municipality. In 1076 a hermitage with Margarethe chapel was founded by Haziga, the wife of Palatine Count Otto II. Of Scheyern-Wittelsbach. In 1079 this was converted into a monastery, but by 1085 was moved to Fischbachau. With its proximity to Tyrol, Bayrischzell was the scene of armed conflicts in both the Spanish and Austrian wars of succession and in the Napoleonic Wars and local mountain guard skirmishes with the Tyroleans.