Alongside Tesselberg and Lanebach, Mühlbach is the largest mountain village in the municipality of Gais, and is situated on a sunny mountain slope on the left side of the Tauferer Valley, at an altitude of 1447m above sea level.

First mention is made of the small mountain village in 1337. The church is dedicated to the Fourteen Holy Helpers, and is a popular destination for pilgrimages. The hotel is located in the centre of the village, next to the vicarage and a primary school.

From early days on, farmers in Mühlbach farmed the land, kept dairy cattle and engaged in forestry. These pursuits have left their stamp on the mountain village of Mühlbach to this day. The village is characterised by steep meadows, small parcels of arable land and mountain lodges offering refreshments.
Like Mühlbach, the neighbouring village of Tesselberg is a typical South Tyrolean mountain settlement, nestling at the foot of the Rieserferner mountain range at an altitude of 1474m above sea level.