The solar observatory Einstein Tower (Einsteinturm) at the Telegrafenberg in Potsdam is both a landmark of modern architecture and an important place for solar physics. Originally built for high-resolution spectroscopy and measuring the gravitational redshift, research shifted over the years to understanding the active Sun and its magnetic field. Nowadays, telescope and spectrographs are used for research and development, i.e., testing instruments and in particular polarization optics for advanced instrumentation deployed at major European and international astronomical and solar telescopes. In addition, the Einstein Tower is used for educating and training of the next generation astrophysicists as well as for education and public outreach activities directed at the general public. This article comments on the observatory's unique architecture and the challenges of maintaining and conserving the building. It describes in detail the characteristics of telescope, spectrographs, and imagers; it portrays some of the research and development activities.