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Mönichwald is situated at an altitude of 600 m at the river Lafnitz at the southern slope of the Hochwechsel (1,738 m) mountain. The place was first mentioned in a document dating from 1163. Monks from the Benedictine abbey of Vornbach am Inn in Bavaria had cleared the woods and built the first chapel, hence the name 'Mönichwald' ('monk in the woods').

The parish church Sankt Peter und Paul [left] goes back to a church consecrated in 1163. The present Baroque church was built in 1716.