The inception of Azerbaijani Naval Forces dates back to August 5, 1919, when the government of the Azerbaijan Democratic Republic established the navy force on the basis of the Russian Imperial fleet deployed in the Azerbaijani sector of the Caspian Sea.

According to the Presidential Decree of Heydar Aliyev from 1996, August 5 was declared the Day of the Azerbaijani Navy.

It manages the Navy and provides comprehensive control over the surface conditions in the sector of the Caspian Sea belonging to Azerbaijan.

[9] The site of the old Soviet Naval base in Baku is now transformed to non-military use include an arts centre.

On May 19, 2006, the Azerbaijani and Turkish Navy held a joint military exercise on safeguarding the security of oil and gas pipelines in Baku.

The training session was observed by Azerbaijan Navy commander Shahin Sultanov and Turkish Armed Forces attaché Seyhan Ceyhan.

The initiative assists the two countries in improving their ability to prevent and, if needed, respond to terrorism, nuclear proliferation, drug and human trafficking, and other transnational threats in the Caspian region.