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Kappeln (Danish: Kappel) is situated at an altitude of 10 m on the river Schlei near the eastern coast of Schleswig-Holstein. The place began to develop as a fishermen's village with a chapel, which also became the origin of the village's name (Kapelle = chapel). The oldest document mentioning "dat Dorp tho Cappel" dates from 1357. In 1870 Kappeln was chartered as a town. In the 1930s Kappeln became a military post. The naval base of Olpenitz, currently the largest navy harbour of Germany, was founded in 1959. In 1974 the old town of Kappeln was merged with the municipalities of Kopperby and Mehlby. Today, Kappeln has a population of about 10,000.

The Nikolaikirche (church of St. Nicholas) [background left] was built in 1789–1793 in late Baroque style in place of a previous chapel.