Lauterbad is a small spa village absorbed into Freudenstadt, lying about three kilometres southeast of the Marktplatz at the foot of a wooded valley. It is the original Bad in Freudenstadt's full title "Heilklimatischer Kurort und Kneippheilbad": the mineral springs here were the basis of the town's spa reputation long before the post-war rebuild of the centre. A modest spa garden and a Kneipp foot-bathing facility still operate in the village.
For visitors the main interest is as a quiet base for walks. Trails fan out from Lauterbad into the surrounding forest, including the path up to the Friedrichsturm and longer routes south toward the Glatten valley. A handful of small hotels and a couple of restaurants make it pleasant for a meal after a hike. Local bus 12 connects it to Freudenstadt centre in about ten minutes.