The town and harbour originated during the
Middle Ages near Aalholm Castle and a
Franciscan cloister. The town was a natural crossroads for commerce and traffic on account of its having the only natural harbour on the south coast of Lolland. During this time Lolland, and especially its southern coast, was vulnerable to attack by
Wends, its neighbors on the opposite side of the Baltic Sea. Proximity to the castle was a great advantage to the people who lived there, but protection also meant that they belonged to the castle. On 7 December 1409 they were liberated when
Eric of Pomerania gave Nysted merchant town status. This was re-established by King
Christian II in 1513. Like other merchant towns the citizens of Nysted joined in on Christian II's side in the
Count's Feud, which resulted in the capture of Aalholm Castle in 1534 when Jørgen von der Wisch was absent. The castle then was overtaken by Count Christoffer, who held it for two years. The town's coastal advantage as a natural harbour disappeared with the advent of the railroad. ==Attractions==