Its primary responsibility is the final appellate review of decisions by lower courts for errors of law.

In addition to the court's appellate duties, a few judges of the Federal Court of Justice act as investigating judges in criminal investigations led by the Public Prosecutor General for a small number of exceptional offenses (such as crimes against humanity and the formation of terrorist organisations).

[8] In the states of central and northern Germany, this changed following the foundation of the North German Confederation, where the Leipzig-based Bundesoberhandelsgericht commenced operation in August 1870.

[9] In the beginning, the court's supreme appellate jurisdiction was largely limited to trade law matters, but after the southern German states joined the Confederation in November 1870 to form the German Empire, the court—now known as Reichsoberhandelsgericht—received jurisdiction over various additional areas of civil law.

Also located in Leipzig, the Reichsgericht enjoyed far broader supreme appellate jurisdiction than its predecessors, encompassing all civil and criminal matters arising in the Empire.

[11] In the wake of Germany's defeat in World War II, the Reichsgericht, like all German courts, was closed, and its administration subsequently dismantled, by proclamation of General Eisenhower of the United States Army on 18 April 1945.

[13] The court was tasked with ensuring the uniform jurisprudence within the zone; to that end, its scope of jurisdiction and its procedural rules largely followed the example of the Reichsgericht.

Article 96(1) of the Basic Law provided that "higher federal courts shall be established for the spheres of ordinary, administrative, finance, labour and social jurisdiction.

[17] Karlsruhe's most serious contender had been Cologne, where both the Supreme Court for the British Zone and the German High Court for the Combined Economic Area were based, but the Karlsruhe proposal ultimately found a large majority in the relevant parliamentary committee.

[27]: 19 The Federal Court of Justice is housed in five buildings on park-like premises in the centre of Karlsruhe, Herrenstraße 45 a.

The main building is the Hereditary Grand Ducal Palace (Erbgrossherzogliches Palais) built in 1891 to 1897 by Josef Durm.

[27]: 21 The Court has two branch offices, such as the Villa Reiss in the Gartenstrasse and a former Bundeswehr barracks in the Rintheimer Strasse, Karlsruhe.

[27]: 21 Judges must meet the personal requirements for lifetime judicial appointments; in particular, they must be German citizens and must have the necessary educational background.

[32] Nominations for new judicial appointments can be made by the Federal Minister of Justice or members of the electoral committee.

[46][47] As in all German courts,[48] an annually revised schedule of responsibilities (Geschäftsverteilungsplan) specifies in detail the allocation of cases to divisions, and each division's internal schedule of responsibilities determines the allocation of cases to a five-judge panel.

In practice, these responsibilities are rarely changed, which leads to a high degree of specialisation of the individual divisions.

In some instances where the five judges of the panel unanimously find that an appeal is inadmissible or has no chance of success, they can dismiss it without oral argument.

An appellate court is legally required to grant leave if (a) the legal matter is of fundamental significance or if (b) the further development of the law or the interests in ensuring uniform adjudication require a decision to be handed down by the Federal Court of Justice.

[70] The criminal divisions of the Federal Court of Justice primarily deal with appeals on points of law (Revision).

In some trials, the public prosecutor is joined by one or more private accessory prosecutors (Nebenkläger), which is a role that can be assumed by the victims of a number of serious offenses such as murder or sexual abuse, or by individuals whose children, parents, siblings, spouses or life partners were killed through an unlawful act.

[74] As in civil matters, appeals on points of law in criminal matters may allege procedural defects or an incorrect understanding of the law that led to the trial court's decision, and—again as in civil cases—the Federal Court of Justice itself does not receive additional evidence, nor does it hear witnesses.

In some instances where the five judges of the panel unanimously find that a criminal appeal is inadmissible or has no chance of success, they can dismiss it without oral argument.

[75] Unlike in civil matters, a panel can also unanimously decide in favour of a defendant without oral argument.

However, the Federal Court of Justice quashes factual findings insofar as they are affected by the violation of law by virtue of which the judgment is vacated.

[82] The Public Prosecutor General may also take over an investigation of various more ordinary offenses (including murder, manslaughter and abduction) under certain circumstances (for instance where the offence is capable of undermining the continued existence or security of the Federal Republic of Germany) and when it deems the crime to be of "special significance".

[102] Admission to the bar at the Federal Court of Justice is highly selective; as of June 2022, only 38 attorneys are so admitted.

[104] The requirement for a representative specifically admitted to the Federal Court of Justice does not apply in criminal cases.

If a decision by the Federal Court of Justice depends on the interpretation of the laws of the European Union, it must stay the proceedings and seek a preliminary ruling from the Court of Justice of the European Union (CJEU) before rendering a final decision in the case.

[110] This duty does not arise in situations where the law of the European Union, as interpreted by the CJEU in prior decisions, is sufficiently clear (acte clair doctrine).

[30] Judgements by the Federal Court of Justice end with the phrase "von Rechts wegen" ("by virtue of the law").