The Pfalz Flugzeugwerke GmbH, Speyer am Rhein company was founded in 1913 by Eversbusch brothers. At the end of the same year the company received consent from the Societe Anonyme des Airoplanes Morane Saulnier for completing the Morane L (Parasol), and the Morane H planes, which came in to the war Later as the Pfalz A.I and the Pfalz E.I-E.V respectively.
In early 1917 ingenieur Rudolf Gehringer who had earlier worked in Freiedrichshafen, joined the Pfalz Company. In April, Pfalz received an order for 100 license-built Roland D.II fighters. Gehringer studied the major shortcomings of Roland D.II and developed his own project, which later received the designation Pfalz D.III.
The new fighter showed good performance on test flights, and Pfalz proposed to build 70 planes under the limits of the contract with Roland. At this time the Roland D.IIa was obsolete and the Idflieg agreed to accept the D.III from the Pfalz Company.
The first D.III fighters reached front during July of 1917, and soon the order was increased to 370 planes. Pilots reported that the D.III had excellent maneuverability, visibility, good climb, and speed. But the gun placement inside the fuselage was not to the pilots liking and the pilots recommended installing the weapon above the engine (at eye level).
Overall, the Pfalz D.III was a great plane for its time. The Pfalz Company, which received preliminary news, which was good, about the new fighter directly from the front, immediately began development of D.III. 260 planes of this type were built between April and October of 1917; in the 1st of November the new D.IIIa arrived at the Front. But many D.III's were still in service; some of them were still seen at the Front until the autumn of 1918, the last one was scrapped in October of 1918.
Many successful pilots, some of whom were famous aces, flew the Pfalz D.III : Werner Voss (48 victories, Pour Le Merite), Emil Thuy (35 victories, Pour Le Merite), Hans Klein (22 victories, Pour Le Merite), and others.