The club was founded as SG Dynamo Berlin in April 1953, and was the first club to bear the name Dynamo Berlin. Its football team entered the second tier DDR-Liga in 1953, taking the spot of the recently dissolved football department of SG Volkspolizei Potsdam. According to some sources, the team of SG Dynamo Berlin was formed from SG Deutsche Volkspolizei Berlin, which had initially taken over the spot of SG Volkspolizei Potsdam in the 1952-53 DDR-Liga and absorbed the football team of SG Volkspolizei Potsdam. SG Deutsche Volkspolizei Berlin was founded in 1949. SG Deutsche Volkspolizei Berlin was reformed as SG Dynamo Berlin in April 1953 following the founding of SV Dynamo. When SC Dynamo Berlin was founded in 1954, the club, now relegated to the fourth tier Bezirksliga, was quickly renamed SG Dynamo Berlin-Mitte. In the 1956 season, SG Dynamo Berlin-Mitte earned promotion to the third tier 2. DDR-Liga, at which point it was merged with the reserve team of SC Dynamo Berlin, under the name SG Dynamo Hohenschönhausen. While the new club was technically an independent club, it was, in practice, a feeder club to SC Dynamo Berlin, and regularly featured promising youngsters and retiring veterans from its parent club. SG Dynamo Hohenschönhausen was promoted back to the DDR-Liga in 1959, and, after one relegation from which it immediately recovered, stabilised in the second tier. SC Dynamo Berlin was restructured in 1966, with the football department separated from the Sports Club and reformed as football clubBFC Dynamo. This meant the end of SG Dynamo Hohenschönhausen, with its players transferred to the reserve team of BFC Dynamo.
Icehockey
SG Dynamo Berlin had an ice hockeysection until 1954, which originally began as an ice hockey section of SG Deutsche Volkspolizei Berlin. The ice hockey section of SG Deutsche Volkspolizei Berlin was created in 1950 and made its debut in a friendly match against BSG Einheit Berliner Bär in the Werner-Seelenbinder-Halle on 9 June 1951. SG Deutsche Volkspolizei Berlin managed to win the Berlin championship the same year and qualified for the promotion round for the 1951-52 DDR-Oberliga. The qualification round failed due to lack of participation from other teams, and SG Deutsche Volkspolizei Berlin was promoted to the DDR-Oberliga. However, its stay in the DDR-Oberliga was to be short and the club was relegated after only one season. SG Deutsche Volkspolizei Berlin would be reformed as SG Dynamo Berlin in 1953. The club immediately qualified for a new promotion round for the DDR-Oberliga after an unbeaten season. SG Dynamo Berlin won the promoted round and thus had the right to participate in the 1953–54 DDR-Oberliga. However, its participation in the 1953-54 DDR-Oberliga was prevented as the team was dissolved on order from the sports authorities and had to transfer its best players, such as Hans Frenzel and Wolfgang Nickel, to competitor BSG Chemie Weißwasser. The ice hockey section of SG Dynamo Berlin was re-organized as an ice hockey section of the newly founded SC Dynamo Berlin in 1954.