DYFI was formed in Ludhiana on 1st, 2nd and 3rd November 1980.Prior to its formation, the leaders of K.S.Y.F of Kerala, Socialist Valibar organisation of Tamilnadu, Nav Jawan Sabha of Punjab, DYFI of West Bengal etc assembled in Delhi and gave shape to a Preparatory Committee. This committee conducted a conference in Ludhiana for the formation of DYFI. The constitution and the programme prepared by the Preparatory Committee were placed before the conference and duly passed. The Democratic Youth Federation began its activities on all India level.
DYFI is not a wing of any political party. Anyone can become a member of it. DYFI conducted several agitations against unemployment and price–hike. It goes on conducting intense agitations and propagations against religious fanaticism and terrorism. It fights the pseudo–spiritualism too.