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Philip the Magnanimous of Hesse, or "Leo Hassiae", is the best-known Hessian Landgrave, and probably the only one familiar to people outside of Germany. This fascinating Renaissance prince was an assured ruler, however, he will be best remembered as the most distinguished and active political figure in the Reformation; the beginnings of the modern era in the Holy Roman Empire would be unthinkable without him. During his reign (1518-1567) the state of Hesse went through a period of modernisation that embraced virtually every aspect of public life, including education, science and culture as well as the economy, religion, defence, administration, government, taxation and welfare for the poor and sick. The University of Marburg, the Protestant churches and a number of hospitals dotted around the region are reminders of this time. For centuries Philip was the prince with whom others were compared, and he was often referred to in political and religious disputes. His life was full of ups and downs, just one of the many aspects that make him a fascinating historical figure.

It was the Landgraves of Hesse that secured Schmalkalden as part of their territory and the town has the young and dynamic Landgrave Philip to thank for its place in the annals of European history. His reign coincided with the time of the Reformation and he became one of the first Protestant princes in Germany. He was determined to make Hesse a strong principality – well-protected, prosperous and united under the new denomination. Landgrave Philip views clashed with those of Charles V because he regarded the reformation of the church and of the faith by Martin Luther not as a purely German event, but as a change whose impact would resonate throughout the whole of Europe.

Following the events at the Augsburg Diet in 1530, and the renewal of the Worms Edict, Philip was one of the princes who realised that only a united alliance of all Protestants would offer protection against the Emperor. In the last week in December in 1530, the Schmalkaldic League – the defensive alliance formed by the Protestant rebellion in defiance of Charles V – was founded in the town. However, the official date is 27 February 1531, when Elector John the Steadfast had the necessary documents drawn up in Torgau. Seven diets were held in the town.

1537 saw the most glittering princes' diet, attracting a remarkable number of participants – sixteen princes, six dukes, the envoys of the Pope and the kings of France and Denmark, representatives from 28 Imperial and Hanseatic cities and 42 Protestant theologians, led by Martin Luther and Philip Melanchthon. At this Diet, Martin Luther presented his Schmalkaldic Articles to the theologians. These Lutheran confessions were incorporated into the Book of Concord of the Protestant church, and even today form the basis upon which its pastors are ordained.

The increasing spread of the Reformation led to the Schmalkaldic War (1546-47), in which the Schmalkaldic army suffered a devastating defeat at the battle of Mühlberg/Elb. Despite this setback the Reformation and the Protestant faith prevailed. Conscious of the historic events and aware of the economic importance and strength of the town of Schmalkalden, Landgrave Wilhelm IV (son of Philip the Magnanimous, reigned 1567-1592) – who took sole control of the territory from 1583 after the last of the Henneberg dynasty died – commissioned the building of Wilhelmsburg Castle. Overlooking the town, his "new residence" was built on the site of a medieval fortress between 1585 and 1592. Centred around a square courtyard the castle is a prime example of modern German Renaissance architecture, modelled on palaces in France and Germany. Schmalkalden, a secondary seat of the Landgraves of Hesse, was considered so important that it was afforded a new castle, heralding the dawn of a new era.