The band was formed in 2001 by Chris Hathwell, Blake Miller (formerly of Spectacle), Chris Yurocko, and Johan Boegli, when Hathwell's previous band, Festival of Dead Deer, broke up. They released their debut EP, Moving Units, on Three One G in early 2002. Their touring experience includes opening slots for Hot Hot Heat, Pixies, Blur and Nine Inch Nails. Their debut full-length album, Dangerous Dreams, was released on October 12, 2004 by Palm Pictures.
Moving Units released their second studio album, Hexes for Exes in 2007 on Metropolis Records. The first single, "Pink Thoughts", was released through the band's MySpacepage. So Sweet released a one-off limited edition 7 inch vinyl single "Crash N Burn Victims" in the UK coupled with a remix of the same track by Felix Cartal in November 2007.
The band released an EP titled Tension War on February 14, 2011. Moving Units chose to self-release the new EP in conjunction with their management firm, Post Modern. Moving Units also played at Coachella 2011 in support of their latest release.
On March 31, 2012, Moving Units announced via their Facebook page that Blake Miller had left the band by mutual decision.
In late 2012, Blake Miller had performed shows with the band name "Moving Units" without approval of the original members, causing a mild dispute. The issue being resolved later, the original band members reached an agreement where Miller was given permission to use the band's name "Moving Units" with new members and continue the project under the same moniker.