The flotilla was formed at Pillau in April 1941 under the command of Korvettenkapitän Hans-Gerrit von Stockhausen. The flotilla trained newly commissioned U-boats in the firing of torpedoes (Torpedoschiessausbildung), a course which lasted for three to four weeks. In 1945, as the Russians advanced deeper into Eastern Europe, the flotilla relocated to Warnemünde.