Kazimierz's youngest synagogue is arguably its most spectacular today. Built in 1850-52, when Kraków was under Austro-Hungarian occupation, the synagogue's design by Ignacy Hercok is fashioned after the Leopoldstädter Tempel in Vienna (hence the name), which was destroyed on Kristallnacht. Though the exterior is typical of the Moorish Revival style popular during that time, the interior decoration uniquely incorporates many Polish folk motifs with the Moorish patterns. Heavily laden in gold leaf, the gleaming interior is absolutely worth the price of admission.

Used as a warehouse and stables during Nazi occupation, the synagogue survived the war after which regular services were even held into the mid-1980s. In the late-1990s a torrent of private donations poured in to restore the synagogue to its prewar splendour. Work was completed in 2000, and today the gilded interior plays host to occasional concerts and religious ceremonies, most notably during the annual Jewish Culture Festival each summer.