The agency experienced dramatic reorganization and growth after the 1977 unrest and attempted coup, resulting from the hijacking of JAL flight 472 from Bombay, India to Dhaka International Airport, Tejgaon.

The stated priority mission of the DGFI is to provide timely, and accurate intelligence, and tactical support to Bangladesh Armed Forces commands.

[6][7] The agency's elite counter-terrorism unit formed in 2006, CTIB, is responsible for gathering intelligence, infiltrating and neutralizing terrorist organizations that may pose a threat to national security.

A major impetus for the creation of the agency was to monitor unforeseen threats from neighboring and foreign armed forces, especially India and Pakistan.

The eight light emission around the lotus expressing Patriotism, Loyalty, Discipline, Concentration, Alertness, Prudence, and Efficiency of the activities of the agency.

[citation needed] The DGFI is headed by a Director-General, who is traditionally a serving Major-General (Two-star general) in the Bangladesh Army.

[12] The bureau was established along with the Rapid Action Battalion (RAB), and the counter terrorism cell of National Security Intelligence (NSI).

[20] Former Prime Minister Sheikh Hasina used DGFI as a tool to silence dissidents who raised concerns about her autocratic rules.

[21][22] DGFI, during Hasina's rule, were accused of detaining tens of thousands of opposition activists,[23] killing hundreds in extrajudicial encounters, and disappearing journalists and bloggers.

[28] In 2012, Defense Adviser Major General (retired) Tarique Ahmed Siddique was involved in bribery of 70 lakh Bangladeshi currency carried by a government vehicle.