Established on December 15, 2005, the club was founded after their former owners relocated the San Jose Earthquakes' players and staff to Houston following the 2005 season.

Mayor Bill White joined city council members, Harris County officials, local soccer organizers and fans in welcoming team coach Dominic Kinnear and players Pat Onstad and Wade Barrett with cowboy boots and hats.

Houston faced the Kansas City Wizards in the Western Conference final, winning 2–0 to advance to the MLS Cup championship game for a consecutive season.

Houston won 2–1 on a game-winning goal by Dwayne De Rosario in the second half, thus winning a conescutive MLS Cup.

[7] On November 21, 2007, it was announced that AEG was in negotiations to sell the Dynamo to a partnership of Brener International Group and Golden Boy Promotions, owned by the famed boxer Oscar De La Hoya.

[8] On February 26, 2008, Houston Dynamo President Oliver Luck revealed the planned negotiations to the media stating that the Houston Dynamo would be managed in majority by original owners Anschutz Entertainment Group (who held 50% of ownership) along with newfound partners Gabriel Brener, head of Brener International Group, and multiple World and Olympic boxing champion Oscar De La Hoya (each with 25% ownership).

The Dynamo started the new year with a quick exit from the 2008–09 CONCACAF Champions League with a 1–4 aggregate loss (1–1, 0–3) to Atlante in the quarterfinals.

During the 2009–10 offseason, the Dynamo saw the departures of two key players, Ricardo Clark to Eintracht Frankfurt and Stuart Holden to Bolton Wanderers.

The club defeated Miami FC, 1–0, on June 29 before losing to Chivas USA, 1–3 in the Quarterfinals on July 6 (both games at Robertson Stadium).

The Dynamo also competed in the 2010 North American SuperLiga, winning the group before exiting after a 0–1 loss to Morelia on August 5 at Robertson Stadium.

Brad Davis was injured in the first half, however, the Dynamo scored twice to earn their ticket to the MLS Final and a chance to face the Los Angeles Galaxy.

The Dynamo topped their group in the 2012–13 CONCACAF Champions League, where they moved on to face Santos Laguna in the round of 16 of the competition to be played March 5, 2013.

Their 36 consecutive game home-win streak ended by Sporting Kansas City on May 12, 2013, in a 0–1 loss, after Aurelien Collin scored the winner.

Houston faced Montreal in a heated contest for the MLS Wildcard Match to open the postseason at BBVA Stadium.

Ricardo Clark was able to get on the board at the 50', and Omar Cummings, scored in stoppage time to complete Houston's exciting comeback.

Omar Cummings for the second time scored a thrilling stoppage-time goal to put the Houston Dynamo into the Conference Championship for the third consecutive year.

[14] The Dynamo hired former U.S. men's national team player Tab Ramos as head coach in 2020,[15] traded for former Minnesota United FC attacker Darwin Quintero[16] and signed Croatian goalkeeper Marko Maric.

Onstad returned to Houston after serving as an assistant coach, chief scout and technical director for three MLS teams since 2011.

[21] Paulo Nagamura was appointed as the head coach ahead of the 2022 season on January 3, 2022, and was dismissed eight months later after a 8-16-5 record placed the team last in the Western Conference.

The Dynamo announced the addition of U.S. Men's National Team legend Tim Howard to its ownership group on July 16, 2024.

[24] Howard said joining the HDFC ownership grants him the opportunity to "further contribute to the growth of the game in the United States and connect with the passionate soccer fans who call Houston home."

The new logo features a hexagonal shape to whose six sides represent the Dynamo's founding in 2006 and to reference the six wards that made up the original layout of the city.

[27][28] The official reason for the name is that then-team president Oliver Luck said, "Dynamo is a word to describe someone who never fatigues, never gives up.

It raised a furor among some locals of Hispanic descent, a major target audience, who related 1836 with the war for Texas independence.

[32] On June 22, 2022, Houston Dynamo Football Club (HDFC) announced plans for major upgrades to Shell Energy Stadium.

It opens into a climate-controlled club area where guests can enjoy an all-inclusive experience with premium food options, a dedicated bar serving beer, wine and cocktails along with non-alcoholic beverages.

The training facility is located 10 miles south of Shell Energy Stadium and was built through a partnership with the City of Houston.

Dynamo fans contributed greatly to the sell-out crowd of 22,427 in the 2006 MLS Cup, which was played about 275 miles (450 km) from Houston, in Frisco.

The Dynamo have also developed a rivalry with Sporting Kansas City after facing each other in the playoffs and the US Open Cup multiple times.

Alex Dixon became the first academy alum to score a goal with his stoppage time winner against Real Salt Lake on August 20, 2011.