Dimension 5 was formed in 1989 by Kerry Palmer, Tony Davies, and Graham Franklin. Tony left the group just before they released their debut single, "Utopia," on Perception Records in 1990. The group went on to release three more singles with Perception Records before departing the label.
Dave Cousins then joined Dimension 5 and established D5 Records, which went on to issue several additional recordings. During this period, Charlie Clarke and Nick Wenham joined the group, while Dave Cousins left, taking D5 Records with him. With his departure, Nick and Kerry founded Intastella Records to continue releasing Dimension 5's material. This marked the beginning of the group's "Classic" era, during which they released seven singles and one album.
In 1997, Charlie and Nick left to form the group Hunab Ku. Ian Khan subsequently joined Dimension 5 and contributed to their final two singles, which appeared on Interstellar Records and Blue Moon UK.
In 1999, Dimension 5 relocated to Thailand and released "Second Phase" with new member Christer Borge-Lund. Upon returning to the UK in 2001, the group went on hiatus.
Dimension 5 described their music as "space techno psychedelic trance" around the time of their debut album (Transdimensional) and cited Hawkwind, Gong, Tim Blake and Tangerine Dream as some of their major influences.