After the wooden observation tower on the Schläferskopf, built in 1883 by the Taunus-Klub Wiesbaden, had to be demolished in 1900 due to dilapidation, a new stone building was erected in 1905/06 at the instigation of the Wiesbaden city council under the auspices of the Wiesbaden Beautification Association according to the plans of master builder Ludwig Euler (1844-1909). This was preceded by several years of fundraising by the association to finance the construction, which cost 34,600 marks. The foundation stone was laid on 01.05.1905 and the festive inauguration took place on 07.07.1906. On this day, the 22-metre-high tower, which is strongly reminiscent of a round medieval keep, was given the name Kaiser Wilhelm Tower with "the highest approval".

The strong attraction of the tower, even in winter, prompted the Verschönerungsverein to replace the adjoining wooden utility rooms with a stone accommodation (for the tower keeper) and restaurant building, which was inaugurated in July 1908 at a cost of a further 15,900 marks. The design came from the architect Karl Mohr, who endeavored to adapt the building to the existing tower. Today, the first floor still houses a hall with original furnishings that is well worth seeing. Following its renovation, the Kaiser Wilhelm Tower has been open to the public again since 2016.