The Habsburg emperor Frederick III, by this time also Carinthian duke and Vogt of Millstatt, had urged on this decision for the sake of his foundation of the knightly order of St. George to which he handed over the monastery and its estates on 14 May 1469.
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In summer the "Musikwochen Millstatt" (Millstatt Music Weeks) festival performs various concerts in and around the monastery church including sacred music, choral and classical works as well as jazz, chamber music, piano and organ recitals.
Millstatt Abbey was founded as a proprietary monastery by the Chiemgau count Aribo II (1024–1102), a scion of the Aribonid dynasty and former Count palatine of Bavaria, and his brother Poto on their estates in the newly established Duchy of Carinthia.
In medieval times it belonged to the estates of the Hohenwart castle, seat of the Counts of Celje, the Counts of Ortenburg, the Knightly Order of Saint George in Millstatt and finally the Austrian House of Habsburg.