Schaefferstown is a census-designated place (CDP) in Lebanon County, Pennsylvania, United States and is completely surrounded by Heidelberg Township. The population was 984 at the 2000 census. Bomberger's Distillery is located near Schaefferstown.
Schaefferstown is one of the oldest towns in Lebanon County, being at least a century older than the county itself. It is the main town in Heidelberg Township. Although the exact date of the first settlers is unknown, it is certain that they settled here before 1725. Those first settlers were German Jews. Many of them were skilled craftmen and traders. They disappeared, however, when non-Jewish German settlers started moving into the area. The old burial ground was situated about a fourth mile south of Tower Hill and almost a hundred yards east of South Market Street in Schaefferstown. The Jewish settlement was known as the Lebanon Trading Post.
Schaefferstown held a Bicentenntial in 1963.