The bunker on Pallasstraße in Berlin-Schöneberg was built between 1943 and 1945 by Soviet forced labourers, who were held in the nearby school, often with their families. The bunker was located near the former Berlin Sportpalast (Berlin Sports Palace), where Joseph Goebbels gave his famous "total war" speech, and which was demolished in 1973. The five floors of the bunker were originally intended to contain offices and equipment for the nearby Reichspost (German postal service) telecommunications office. A freight lift was also to be added, the fortified openings of which are still visible.

However, due to a lack of materials, the construction was still not completed in April 1945 and remained in the rough state. Only two thirds of the ceiling was covered with concrete and the bunker's equipment had not yet been installed. During the first post-war years, the US Army made several attempts to demolish the bunker. Subsequently, the bunker was abandoned for decades and was covered with graffiti. However, it was retained as a bunker in case of a possible war due to the Civil Protection Act. After the demolition of the Sportpalast, a new apartment complex was built. It was later called "Pallasseum". As it could not be demolished, the empty bunker was included in its construction. From 1986 to 1989, the Interallied Command (post-World War II governing body) in West Berlin ordered the rehabilitation of the bunker as a civil defence shelter, which caused many protests among the local residents.

 In 1987, the bunker was used as one of the filming locations for the famous German film Wings of Desire by Wim Wenders. Since 2002, the bunker has been used as a memorial site. In 2010, it was declassified as a bunker. A year later, the building was listed as a memorial. Today it is a memorial site for the Second World War and the Cold War.