Krautheim is a town in the Hohenlohe district of Baden-Württemberg, in south central Germany. It is situated on the river Jagst, 12 km (8 mi) northwest of Künzelsau, and 16 km (10 mi) southwest of Bad Mergentheim. The town lies in the border area between the Baden and Württemberg regions. Records from the year 1096 mention the area as "Crutheim", but the modern incorporation was approved during 1972–73.