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Bayerisch Eisenstein is part of Bayerischer Wald and borders the first German national park established in 1968. The town is both winter and summer resort. In the summer walking in the forest and mountains is popular. In winter, winter sports prevail concentrating on the Gross Arber mountain.
It is one of a trio of connected places in the area. The other two are Železná Ruda (German: Böhmisch Eisenstein or Markt Eisenstein) and Špičák (German: Dorf Eisenstein), both in Czech Republic. Železná Ruda lies 2 kilometres northeast from Bayerisch Eisenstein. The town's railway station is split by the border. In August 2006 Bayerisch Eisenstein and Železná Ruda signed a twinning agreement