The Duchy of Pfalz-Neuburg was created in 1505 as the result of the Landshut War of Succession and existed until 1799 or 1808. After the so-called Kölner Spruch (Verdict of Cologne) the Duchy was created from the territories north of the Danube for Otto Henry and Philipp, the sons of Ruprecht of the Palatinate. While they were minors, their grandfather Philipp ruled the Duchy until his death in 1508, followed by Frederick II. In 1557 Otto Henry ceded his duchy (the so-called Young Palatinate) to Wolfgang of Pfalz-Zweibrücken. The eldest son of Wolfgang, Philipp Louis, founded in 1569 the elder line of Pfalz-Zweibrücken-Neuburg, from which the Palatinate-Sulzbach lineage was separated in 1614. Pfalz-Neuburg joined the Protestant Union in 1608. In 1800, the Duchy was invaded by the France and on June 26, 1800, the Habsburg, Württemberg and Bavarian armies fought a battle there. After fighting for most of a day, the Coalition armies withdrew. Neuburg was occupied by the French, and General Ney established his headquarters in the castle there.
The Duchy of Pfalz-Neuburg was abolished in 1808. In the partition of Bavaria in 1837 Pfalz-Neuburg was joined with Swabia but became a part of Upper Bavaria in the 1970s.
With the death of Elector Charles Philip in 1742 all his territories including the state of Palatinate-Neuburg passed to the Palatinate-Sulzbach line of the Wittelsbach dynasty. Charles Theodor of the Sulzbach line was a descendant of Augustus, Count Palatine of Sulzbach, a brother of Wolfgang Wilhelm.