The submarine was ordered on 28 June 1938 and laid down on 10 April 1939 as K XXV at the Wilton-Fijenoord, Rotterdam.

Following the German invasion of 10 May 1940, O 25 was scuttled in the Nieuwe Waterweg near Rotterdam because there was no tugboat available to tow her to the United Kingdom.

[5] From June to July 1941 UD-3 served as a trial boat in Kiel while attached to the 3rd Flotilla.

From August 1941 until September 1942 the boat was stationed at Lorient in occupied France and attached to the 2nd Flotilla.

[5] When patrolling off the west coast of Africa UD-3 spotted and sank the 5,041 GRT Norwegian freighter Indra on 26 November 1942.