Wilhelm Caspar Wegely was in 1751 granted by King of Prussia an exclusive privilage to set up a porcelain manufactory. Customs duties were waived for the new entity on the materials needed for the production process. Wegely was also granted a building for his manufacture. First Wegely's products were marked W. In 1757 King of Prussia Frederick II the Great withdrew his patronage and Wegely decided not to continue production.
In 1761 Johann Ernst Gotzowsky acquired the porcelain formula as well as raw materials and molds. He started the Berlin factory, which he sold to the king of Prussia Frederick II in 1763. The factory got a new name the Königliche Porzellan-Manufaktur (Royal Porcelain Manufactory). The royal factory used a king's emblem, the cobalt-blue sceptre.
Frederick II used the KPM porcelain as a diplomatic gift. Porcelaine commissioned by him was given to numerous European rulers.
In 1797 KPM was the first manufacture in the country to acquire a steam engine. In the 1807 - 1808 period Napoleon occupied Berlin and seized the company's stock. The porcelain was auctioned in Warsaw and Breslau.
In 1918 the monarchy ended. As the result the company was renamed to Staatliche Porzellan-Manufaktur (State Porcelain Manufactory).
in 1943 in one of Allied air raids KPM buildings were destroyed. The factory was rebuilt and reopened soon after WWII.