Schwarzburg-Rudolstadt was established in 1599 in the course of a resettlement of Schwarzburg dynasty lands. Since the 11th century, the ancestral seat of the comital family had been at Schwarzburg Castle, though after 1340, for most of its existence as a polity had the capital at the larger town of Rudolstadt. In 1583 Count Günther XLI of Schwarzburg, the eldest son of Günther XL the Rich and ruler over the united Schwarzburg lands, had died without issue. He was succeeded by his younger brothers, whereby Albert VII received the territory around Rudolstadt. After their brother Count William of Schwarzburg-Frankenhausen had died in 1597, the surviving brothers Albert VII and John Günther I established the two counties of Schwarzburg-Rudolstadt and Schwarzburg-Sondershausen by the 1599 Treaty of Stadtilm.
A piece of land located in Schwarzburg-Rudolstadt was transported into the year AD 2000, in turn being replaced by the 21st century town of Grantville. Initially, the state of Schwarzburg-Rudolstadt was nervous about Grantville's appearance until a representative party from the time-displaced town eased the state's worries. Schwarzburg-Rudolstadt became involved in the New United States and its extension the United States of Europe.