Dinamo București was formed on 14 May 1948 through the merger of two clubs, Unirea Tricolor MAI and Ciocanul București, as the team representing Romania's Ministry of Internal Affairs, a status that for decades shaped its rivalry with the army-backed Steaua București. Matches between the two clubs, known as the "Eternal Derby", remain among the most highly charged fixtures in Romanian football, and have at times been marred by serious incidents, including a 1997 fire set by Dinamo supporters in the away section of Steaua's stadium.
Dinamo won its first Romanian championship in 1955, and by the autumn of 1956 had become the first Romanian club to play in the European Cup, beating Turkey's Galatasaray 3-1 in their opening match. In total, the club has won 18 Romanian championships, the last in 2007, along with 13 Romanian Cups, two Romanian Super Cups and one League Cup, making it one of the most decorated clubs in the country's history.
The club's greatest European achievement came in the 1983-84 season, when Dinamo became the first Romanian side to reach the semi-finals of the European Cup. Along the way they eliminated reigning European champions Hamburger SV, winning 3-0 at home and 3-2 away, before losing in the semi-final to eventual winners Liverpool. A few years later, in 1989-90, the club also reached the semi-finals of the Cup Winners' Cup.
A dispute over the 1988 Romanian Cup final, in which Dinamo were denied the trophy despite the result on the pitch, after it was awarded to Steaua by the Communist Party leadership, poisoned relations between the two Bucharest clubs for years afterwards. Known as the Red Dogs, Dinamo have played in red-and-white colours for decades, and while their historic Stadionul Dinamo undergoes reconstruction, the club currently plays its home matches at Stadionul Arcul de Triumf.