She was laid down on 25 November 1942 by Blohm & Voss in Hamburg, Germany, and commissioned on 16 September 1943 with Oberleutnant zur See Walter Köhntopp in command.

The submarine was powered by two Germaniawerft F46 four-stroke, six-cylinder supercharged diesel engines producing a total of 2,800 to 3,200 metric horsepower (2,060 to 2,350 kW; 2,760 to 3,160 shp) for use while surfaced, two Brown, Boveri & Cie GG UB 720/8 double-acting electric motors producing a total of 750 metric horsepower (550 kW; 740 shp) for use while submerged.

U-995 was fitted with a Royal Norwegian Navy design Balkongerät sometime during the 1960s and then removed sometime between 4 November 1971 and 13 March 1972.

She then was offered to the West German government for the ceremonial price of one Deutsche Mark.

The offer was refused; however, the boat was saved by the German Navy League, DMB.