After an unsuccessful attempt to train members of an SS penal facility, Skorzeny obtained permission to recruit volunteers from the Wehrmacht, and 100 SS personnel, 50 Luftwaffe and 150 Army personnel were admitted, allowing the formation of a headquarters company and two line companies.
In September 1943, sixteen members of this unit took part in the Gran Sasso raid, which resulted in the rescue of deposed Italian dictator Benito Mussolini.
In February 1944, a third company was formed from mainly Flemish and Dutch personnel with Hauptsturmführer Hoyer as its commanding officer.
1 Company was deployed in Berlin, briefly occupying the Bendlerblock after the attempted assassination of Adolf Hitler.
In August 1944, fifty members of the unit carried out Operation Landfried in Romania, destroying road and railway bridges in an attempt to delay the Soviet advance.