The team was created on December 15, 2005 when the San Jose Earthquakes were relocated, due to owner AEG's failure to secure a soccer-specific stadium.

Mike Chabala, Stuart Holden, Martin Hutton, Patrick Ianni, Mpho Moloi, Adrian Serioux, and Zach Wells were the new additions to the pre existing San Jose Earthquakes 2005 Roster.

After a red card to Chivas' Juan Francisco Palencia, Houston's Brad Davis converted a second-half penalty kick to tie the aggregate score.

With the match in second-half stoppage time, Brian Ching headed in the winning goal from close range to delight the crowd of more than 17,000.

On November 12, 2006, the Dynamo defeated the New England Revolution 4–3 on penalty kicks after a 1–1 tie to win the 2006 MLS Cup held at Pizza Hut Park in Frisco, Texas.

Only one minute and six seconds later, Brian Ching headed in the tying goal for Houston, and the championship was, for the first time in MLS history, decided by a shootout.

Ching's gave Houston a 4–3 lead, and goalkeeper Pat Onstad stopped New England's Jay Heaps on the final attempt to secure the win.