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Gaggenau is situated at an altitude of 141 m on the river Murg in the Rastatt district of Germany's state of Baden-Württemberg. Besides Gaggenau proper, the municipality also encompasses the city districts Bad Rotenfels, Freiolsheim, Hörden, Michelbach, Oberweier, Ottenau, Selbach and Sulzbach. The municipality Gaggenau has a population of about 29,200 (2008).

Gaggenaw was first mentioned in a written document of 1243, while Rothenfels already had been mention two hundred years earlier, in 1041. Up until the 19th century, Gaggenau was a modest village, wich from the 13th century on belonged to the margraviate Baden (1535 margraviate Baden-Baden). In 1691 the village was almost completely destroyed by French troops during the Palatine War of Succession. In the late 19th century the place began to prosper due to the foundation of industrial iron works. In 1922 Gaggenau obtained the official status of a town. During World War II about 70% of the town were destroyed. After the war the town was rebuilt on a new, regular ground plan. Ottenau was incorporated into Gaggenau in 1935, the remaining city districts followed between 1970 and 1975.