Blacksmithing was one of the most important trades in Colonial America, since smiths made or repaired tools, kitchen utensils, weapons, agricultural implements, and household items. The Smithy was built in 1750 expanded in 1761 and a second floor added. The Smithy had workrooms and forges for the nailsmith, locksmith, blacksmith, tinsmith, gunsmith, and gunstock maker.
The building stood until the early 20th century when it was dismantled and converted into brownstone dwellings which were later demolished. In 2004, the Smithy was reconstructed of limestone taken from a local 1700s barn being torn down, and was built on the foundations of the original smithy, thanks to detailed records kept by the Moravians and stored in the Moravian Archives.
The original vaulted cistern is intact. An archaeological report, tools, and metal objects made in the 18th-century smithy are in the Historic Bethlehem Museums & Sites collection. Today, the Smithy is an historic site where trained blacksmiths demonstrate the skills needed to work in a 1700s blacksmith shop.