It is based at Eckernförde, Schleswig-Holstein, and forms part of Einsatzflottille 1, headquartered in Kiel.

The Type 201 submarines were eventually found to be unsatisfactory and were decommissioned early.

The successor class, the Type 205 submarine, entered service in the following years, with eleven boats joining the squadron between 1962 and 1969.

In 1964, the two submarine tenders Lahn and Lech entered service with the 1st UG.

However because of damage and missing spare parts, none of the six boats were in active service as of October 2017.