The club was officially founded on 3 March 1950 by the
Interior Ministry of Albania during the communist regime under dictator
Enver Hoxha. They won four consecutive championships from 1950 to 1953. During this time, Dinamo recorded a hot streak of 25 consecutive wins, a record in Albanian football and 4th longest domestic winning streak in Europe. This championship is not officially recognised by
UEFA, however. In 1989, Dinamo eventually finished third in the league which was won by 17 Nëntori, which made eligible to play in
European Cup Winners' Cup for the third time in their history. In the
preliminary round of the tournament the team faced
Chernomorets Burgas, losing the first leg 1–3 (Demollari scoring the lone goal for Dinamo City) but winning the second 4–0 at home, thus recording its biggest win in a UEFA club competition. The team then was eliminated in the first round by
Dinamo București despite winning the first leg in Tirana 1–0. Dinamo București won the second leg 2–0. In 1995, the team were renamed KS Olimpik Tirana to leave behind the "communist past", but the club returned to their original name two years later. After finishing third in the table in 2005–06 season, Dinamo City named Faruk Sejdini as their new coach. One of Albania's best teachers of footballing fundamentals, he had a spell at the club last term before being dismissed by president Besnik Sulaj. Having returned following a spell at
Shkumbini, Sejdini said: "It's nice to be back." On 23 October 2006, he was fired. At the start of the 2007–08 season,
Agim Canaj took over as head coach, replacing
Ilir Daja who led Dinamo towards the championship title, after a dramatic win against
Partizani 2–1 in the final match, playing for 36 minutes with 9 players. In the summer of 2008, Ilir Daja moved into a position as director in order to make place for
Marcelo Javier Zuleta from Argentina. The Argentinian coach also brought with him four Argentinian players; goalkeeper Daniel Bertoya, defender Alejandro Palladino, midfielder
Agustín González, and striker Cristian Campozano. Zuleta only lasted for the first
Champions League qualification match against Bosnians
FK Modriča before he was replaced as coach by
Artan Mërgjyshi, for only one match. Together with Zuleta, the four Argentinian players also left the club. After Mërgjyshi left,
Zlatko Dalić, the current head coach of
Croatia, was appointed as new coach for Dinamo. He signed a two-year contract with the club. That deal was broken when Dinamo lost its second game in the re-beginning of the
2008–09 season against Partizani.
Shkëlqim Muça was then appointed manager of the club five days after of
Zlatko Dalić's leave. In the 2009–10 season, Dinamo won the championship again, registering its 18th success. In 2011–12 season, the club experienced its worst period of all time, finishing last in the league with 13 points from 26 matches, winning only 3 times. They were relegated to the
Kategoria e Parë for the first time in their history. Since the 2012–13 season, the club have played in the Kategoria e Parë and have risked relegation to the
third tier several times. After spending 9 seasons in the second division, Dinamo clinched the promotion to the Superiore, confirming first place in Group A following a 2–0 win against
FK Vora. On 25 August 2023, it was officially announced by president Bardhi that the club would rebrand to Dinamo City, ahead of the
2023–24 Kategoria Superiore season. ==Stadium==