The club was officially founded on 3 March 1950 by the Interior Ministry of Albania during the communist regime under dictator Enver Hoxha.

In 1995, the team were renamed KS Olimpik Tirana to leave behind the "communist past", but the club returned to their original name two years later.

One of Albania's best teachers of footballing fundamentals, he had a spell at the club last term before being dismissed by president Besnik Sulaj.

At the start of the 2007–08 season, Agim Canaj took over as head coach, replacing Ilir Daja who led Dinamo towards the championship title, after a dramatic win against Partizani 2–1 in the final match, playing for 36 minutes with 9 players.

In the summer of 2008, Ilir Daja moved into a position as director in order to make place for Marcelo Javier Zuleta from Argentina.

[8] After spending 9 seasons in the second division, Dinamo clinched the promotion to the Superiore, confirming first place in Group A following a 2–0 win against FK Vora.

On 25 August 2023, it was officially announced by president Bardhi that the club would rebrand to Dinamo City, ahead of the 2023–24 Kategoria Superiore season.

They won the first leg in Tirana 1–0 with a goal by Bahri Ishka, but in the return match they lost 3–0 by forfeit because during the regime of Enver Hoxha, travel wasn't allowed to Bulgaria.

Drawn against teams such as Sporting Lisbona, Beşiktaş, Dinamo București, Olympique Marseille, Brøndby, CSKA Sofia, Sheriff Tiraspol, CZ Jena, Aberdeen, etc.

Dinamo has passed 3 rounds in the European cups, defeating opponents like Ħamrun Spartans, Chernomorets Burgas and Kaunas.