It was founded in September 2004 as a radio arm of ABC Development Corporation (now TV5 Network, Inc.), and later on Interactive Broadcast Media.

The station aired in a smooth jazz format added up with R&B, soul, bossa nova and house music.

After PLDT's media subsidiary MediaQuest Holdings, Inc. acquired TV5 and its affiliate ABC television stations from the consortium led by the Cojuangco group and Malaysian media conglomerate Media Prima Berhad in March 2010, Dream FM and its regional stations were spun off to become Dream FM Network, led by former ABC stockholder Anton Lagdameo.

The ownership of the stations were transferred to Interactive Broadcast Media, after Cojuangco acquired a non-controlling share of the company.

Dream FM Manila signed off at June 30, 2011, with the song, "Till We Meet Again" by Eric Benét.