Established on 16 March 1951 as a subordinate agency of the Federal Ministry of the Interior, the BGS originally was primarily focused on protecting the West German borders.

A major part of the early BGS personnel joined the newly founded German Armed Forces (Bundeswehr) in 1956 and thus significantly contributed to West Germany's rearmament.

German nationals could move freely from the DDR to the BRD in Berlin, but people attempting to cross illegally elsewhere were likely to be either commercial smugglers or espionage agents carrying contraband (e.g., radio transmitters.).

On 3 October 1953 the Bundespasskontrolldienst (passport control service), which had been established on 19 September 1951, was transferred to the BGS and was now deployed on the entire German border.

[2] On 19 June 1953 its authorized strength was expanded to 20,000 men, a mixture of conscripts and volunteers equipped with armoured cars, anti-tank guns, helicopters, trucks and jeeps.

The BGS had a reputation for assertiveness, which made it especially unpopular with East Germans, who routinely criticized it as a reincarnation of the Zollgrenzschutz from the days of Nazi Germany.

The service uniform was green, but field units wore camouflage fatigues and, at times, steel helmets and military training was still carried out.

Five units had light aircraft and helicopters to facilitate rapid access to remote border areas and for patrol and rescue missions.

The BGS guarded airports and foreign embassies, and several highly trained detachments are available for special crisis situations requiring demolition equipment, helicopters, or combat vehicles.

After shortcomings in regional state police procedures and training were revealed by the terrorist attack on Israeli athletes at the 1972 Summer Olympics, a BGS unit known as Border Protection Group 9 (GSG 9) was formed to deal with counter-terrorism incidents, especially hostage situations.