Balgai Castle arose on the site of the Prussian defensive fortress of Honede, built in the 5th century for King Videvut. Legends say that near the fortress there was a sanctuary of the ancient Prussians, Ramove, where sacrifices were made and offerings were brought to the gods.

In 1239, after a long siege by the Teutons, the Prussian prince Cordune surrendered the fortress to the Order, and it was named Balgea, which later became Balgai. In 1250, the Order built a convent building on the fortress grounds, marking the beginning of the construction of the stone fortress Balgai. The castle became an important military, administrative, political, industrial, and resettlement center.

By 1560, Balgai began to deteriorate due to poor maintenance and lack of funds for repairs. In 1584, the legendary Dancker of Balgai collapsed into the bay. In the 17th century, the castle began to be dismantled for bricks, which the Swedes used to build the fortress of Pillau. With the emergence of Pillau, Balgai lost its strategic significance and turned into a quarry.

In 1834, the ruins caught the attention of German architect Schinkel, who reported on the deplorable state of the castle. Only after the intervention of the Kaiser in 1836 were the ruins protected from further destruction.

In 1929, a small tavern was built on the grounds of Balgai, and a museum of the castle was organized in the restored tower. During World War II, the castle underwent heavy artillery bombardment, and then searches for the Amber Room were conducted among its ruins, leading to further destruction. Currently, the remains of the Order's castle include the ruins of the tower, the ruins of the outer fortifications, and the church.