Neustadt is located on the river Spree. Naturally, ‘Lusatia’s national river’ beckons to be explored, for example, by way of a boat tour starting from the Ruhlmühle mill, about 1.2 miles (2 km) distant from Neustadt. In addition, the Spree Cycle Route runs through Neustadt. The section in direction of Spreewitz and Spremberg is particularly charming as the valley noticeably narrows there and lush mixed woodlands grace the shoreline on both sides.

In Neustadt itself, the doll collection in Dorfstraße 9 is worth a visit, boasting over 2,500 dolls. Highlights of the exhibition are more than 100 recreated fairy tale and story displays. The exhibition is open on several weekends during the summer months.

Another attraction is the wooden belfry at the cemetery. The bell, which came from the chapel in Spreetal, was consecrated in 1992. The graveyard moreover features three ancient stone crosses, which commemorate three robber knights who were executed for their misdeeds during the Thirty Years' War. The Soviet cenotaph in Neustadt is likewise worth a visit. It commemorates the 24 soldiers and two officers who lost their lives during the battle for Neustadt in the spring of 1945.

The village offers two pubs for those seeking refreshment: the inn ‘Zum Hammer’, a traditional pub and guesthouse that was first mentioned in 1658 and offers good home cooking to this day, and the ‘Sorbenscheune’. This pub with guesthouse and a small Heimatstube (heritage museum) welcomes guests with a Sorbian greeting – “Witajće k nam” – and offers German and Sorbian dishes.

The local heritage association maintains Sorbian traditions, such as the wedding procession and Zampern, a local Shrovetide custom of driving out the winter. Neustadt has a bilingual nursery school, where the children learn the Sorbian language (Witaj Project).