The team's name derives from the location of its original arena in the Medveščak area in central Zagreb, with KHL the abbreviation of the Croatian words for ice hockey club.

With much needed investments, the club started aggressively recruiting quality players, beginning with some Canadians including fan-favorites Jim Allison and Mike Coflin who quickly helped the team win and, more importantly, stimulated renewed fan interest in hockey.

From the late 1980s to the early 1990s, they became the best in Yugoslavia, dominating the national championship and winning three consecutive Yugoslav titles from 1989 to 1991, culminating in an appearance in the 1990–91 IIHF European Cup in which they progressed to the second round.

Without generous funding, the club lost its best players and professional status, and was reduced to competing as an amateur outfit in the newly formed Croatian Ice Hockey League.

To mark their move up the professional ranks, the Bears recruited an American coach, Ted Sator, from fellow EBEL team Alba Volán Székesfehérvár.

[6] With a commitment to continue to participate in the Croatian league playoffs, Medveščak made their Austrian debut in front of a sellout crowd at the Dom Sportova in a 6–5 victory against Slovenian member HK Acroni Jesenice on 11 September 2009.

In their inaugural season, they stunned top seeded Graz 99ers in the quarter-finals to knock them out in six games, before being eliminated by eventual champions EC Red Bull Salzburg in the semi-finals.

[8][9] Hedberg himself admitted he had encountered such behaviour for the first time, adding that "things like this shouldn't happen but unfortunately they do",[8] while Medveščak's head coach, Gordie Dwyer, said that he was upset with the incident, and that "this obviously has no place in sport".

[10] Later, Spartak Moscow issued an official apology to both Medveščak and Hedberg, affirming that video cameras at Sokolniki Arena had helped identify two offenders who would be banned from attending games.

[10] The Kontinental Hockey League eventually fined Spartak Moscow 700,000 rubles ($9,135) for the racist incident and issued a "serious warning" to the club, adding that "breaches linked to the incitement of racial, ethnic, or international discord are unacceptable".

The Bears were selected after the success they had in their inaugural season in the EBEL league, hosting more than 200,000 spectators watching live matches without a single incident, and also for its support for the relief campaign for victims of the 2010 Haiti earthquake.