Elector Max III Joseph, of the Bavarian Royal House of Wittelsbach, established the Electoral Porcelain Manufactory in his ?Green Castle? in Neudeck, Munich, on 1 November 1747. The manufactory received the necessary water to operate the equipment from the Auer M?hlback river it was located on.

Porcelain, also known as ?white gold? was classed as one of the most valuable luxury goods of the time, coveted almost as much as precious stones. The Wittelsbachs were the largest buyers of the porcelain and the Bavarian Royal Service was commissioned at the manufactory, as well as gifts for other royal houses. Every plate and cup was engraved with the diamond shield of the Bavarian coat of arms, which became the trademark.

In 1761 the manufactory moved to a specially created northern rondel of Nymphenburg Palace. Over the years its reputation for producing high quality porcelain spread, and Nymphenburg porcelain was delivered as far as Venice. With the arrival of Elector Carl Theodor and his successor Max IV Joseph, from the Palatinate branch of the Wittelsbach family, the manufactory expanded further.

In 1800, under the reign of Max IV Joseph, the Frankenthal Porcelain Manufactory was incorporated into Nymphenburg. The Wittelsbachs began leasing the manufactory as it could not be sold due its royal location. From 1888 to 1975 the B?uml family had the lease. During World War 2 a large part of the manufactory was destroyed, however the molds were preserved as they had been removed and secured in the cellar of the Badenburg. Brothers Alfred, Fritz and Kurt B?uml rebuilt the manufactory after the war and following the deaths of Alfred and Fritz, Karl continued running the factory until 1975 when it was passed to the Wittelsbach Equalization Fund.

Since 1996 Nymphenburg has been under the patronage of HRH Duke Franz of Bavaria. In October 2011, Prince Luitpold of Bavaria obtained Nymphenburg from the Wittelsbach Equalization Fund.