The current office of the Director of Defense Research and Engineering grew out of the Research and Development Board formed with the Department of Defense in 1947. Within the provisions of the National Security Act of 1947, the newly established National Military Establishment consisted of the Secretary of Defense, three special assistants and three agencies: the Joint Chiefs of Staff, the Munitions Board, and the Research and Development Board. The 1949 Amendments to the National Security Act changed the name of the National Military Establishment to the Department of Defense, added a Deputy Secretary and the Chairman of the Joint Chiefs, and converted the special assistants to the title Assistant Secretary of Defense. The two Boards continued.

President Eisenhower’s Reorganization Plan No. 6 went into effect in June 1953. The statutory boards and positions in the Office of the Secretary of Defense were abolished and functions were transferred to the Secretary of Defense. A General Counsel was established and six new ASDs were added, bringing the total to nine. Two of these ASD positions were predecessors to the DDR&E: ASD (Applications Engineering) and ASD (Research and Development). Some time thereafter, the Applications Engineering position became simply Engineering. In March 1957, these two ASDs were combined to become the Assistant Secretary of Defense (Research and Engineering). Under the DoD Reorganization Act of 1958, effective August 6, 1958, the position of ASD (R&E) was abolished and the functions were transferred to the new Director of Defense Research and Engineering.

On October 21, 1977, the DDR&E position was redesignated as the Under Secretary of Defense for Research and Engineering, but the Military Reform Act of 1986 reestablished the position of DDR&E.

The DDR&E reports to the Under Secretary of Defense for Acquisition, Technology and Logistics.