Dresden was ordered under the contract name Ersatz Comet.
She was laid down at the Blohm & Voss shipyard in Hamburg in 1906 and launched on 5 October 1907.
The Oberbürgermeister of her namesake city, Otto Beutler, christened the ship.
Fitting-out work then commenced, and Dresden was commissioned into the High Seas Fleet on 14 November 1908.
Following her commissioning, Dresden began her sea trials.
On 28 November she accidentally collided with and sank the Swedish galeas Cäcilie outside Kiel.
Dresden's starboard propeller shaft was shoved in 30 mm (1.2 in), and she required six months of repair work.
She resumed sea trials in 1909, but a turbine accident necessitated further repairs, which lasted until September.

Although Dresden had not completed the required testing, her trials were declared over on 7 September, as she had been ordered to visit the United States.
The purpose of the voyage was to represent Germany at the Hudson–Fulton Celebration in New York; Dresden was joined by the protected cruisers Hertha and Victoria Louise and the light cruiser Bremen.
Dresden left Wilhelmshaven on 11 September and stopped in Newport, where she met the rest of the ships of the squadron.
The ships arrived in New York on 24 September, remained there until 9 October, and arrived back in Germany on 22 October.

Dresden then joined the reconnaissance force for the High Seas Fleet; the following two years consisted of the peacetime routine of squadron exercises, training cruises, and annual fleet exercises.
On 16 February 1910, she collided with the light cruiser Königsberg.
The collision caused significant damage to Dresden, though no one on either vessel was injured.
She made it back to Kiel for repairs, which lasted eight days.
Dresden visited Hamburg on 13–17 May that year.
From 14 to 20 April 1912, she was temporarily transferred to the Training Squadron, along with the armored cruiser Friedrich Carl and the light cruiser Mainz.
For the year 1911–12, Dresden won the Kaiser's Schießpreis (Shooting Prize) for excellent gunnery amongst the light cruisers of the High Seas Fleet.
From September 1912 through September 1913, she was commanded by Fregattenkapitän (Frigate Captain) Fritz Lüdecke, who would command the ship again during World War I.
On 6 April 1913, she and the cruiser Strassburg were sent from Kiel to the Adriatic Sea, where she joined the Mittelmeer-Division (Mediterranean Division), centered on the battlecruiser Goeben and commanded by Konteradmiral (Rear Admiral) Konrad Trummler.
The ships cruised the eastern Mediterranean for several months, and in late August, Dresden was ordered to return to Germany.
After arriving in Kiel on 23 September, she was taken into the Kaiserliche Werft (Imperial Shipyard) for an overhaul that lasted until the end of December.
She was scheduled to return to the Mediterranean Division, but the Admiralstab (Admiralty Staff) reassigned Dresden to the North American station to protect German interests in the Mexican Revolution.
The cruiser Bremen, then in North American waters, was also due to return to Germany, but her intended replacement, Karlsruhe, had not yet entered service.
On 27 December 1913, Dresden departed Germany and arrived off Vera Cruz on 21 January 1914, under the command of Fregattenkapitän Erich Köhler.
The United States had already sent a squadron of warships to the city, as had several other countries.

The Admiralstab ordered Hertha, which had been on a training cruise for naval cadets, to join Dresden off Mexico.
Bremen was also recalled to reinforce the German naval contingent; after arriving, she was tasked with transferring European nationals to German HAPAG liners.
Dresden and the British cruiser HMS Hermione rescued 900 American citizens trapped in a hotel in Vera Cruz and transferred them to American warships.
The German consul in Mexico City requested additional forces, and so Dresden provided a landing party of a maat (Junior Petty Officer) and ten sailors, armed with two MG 08 machine guns.
On 15 April 1914, Dresden steamed to Tampico on Mexico's Caribbean coast.
T
Dresden was ordered under the contract name Ersatz Comet. She was laid down at the Blohm & Voss shipyard in Hamburg in 1906 and launched on 5 October 1907. The Oberbürgermeister of her namesake city, Otto Beutler, christened the ship. Fitting-out work then commenced, and Dresden was commissioned into the High Seas Fleet on 14 November 1908. Following her commissioning, Dresden began her sea trials. On 28 November she accidentally collided with and sank the Swedish galeas Cäcilie outside Kiel. Dresden's starboard propeller shaft was shoved in 30 mm (1.2 in), and she required six months of repair work. She resumed sea trials in 1909, but a turbine accident necessitated further repairs, which lasted until September.
Although Dresden had not completed the required testing, her trials were declared over on 7 September, as she had been ordered to visit the United States. The purpose of the voyage was to represent Germany at the Hudson–Fulton Celebration in New York; Dresden was joined by the protected cruisers Hertha and Victoria Louise and the light cruiser Bremen. Dresden left Wilhelmshaven on 11 September and stopped in Newport, where she met the rest of the ships of the squadron. The ships arrived in New York on 24 September, remained there until 9 October, and arrived back in Germany on 22 October.
Dresden then joined the reconnaissance force for the High Seas Fleet; the following two years consisted of the peacetime routine of squadron exercises, training cruises, and annual fleet exercises. On 16 February 1910, she collided with the light cruiser Königsberg. The collision caused significant damage to Dresden, though no one on either vessel was injured. She made it back to Kiel for repairs, which lasted eight days. Dresden visited Hamburg on 13–17 May that year. From 14 to 20 April 1912, she was temporarily transferred to the Training Squadron, along with the armored cruiser Friedrich Carl and the light cruiser Mainz. For the year 1911–12, Dresden won the Kaiser's Schießpreis (Shooting Prize) for excellent gunnery amongst the light cruisers of the High Seas Fleet. From September 1912 through September 1913, she was commanded by Fregattenkapitän (Frigate Captain) Fritz Lüdecke, who would command the ship again during World War I.
On 6 April 1913, she and the cruiser Strassburg were sent from Kiel to the Adriatic Sea, where she joined the Mittelmeer-Division (Mediterranean Division), centered on the battlecruiser Goeben and commanded by Konteradmiral (Rear Admiral) Konrad Trummler. The ships cruised the eastern Mediterranean for several months, and in late August, Dresden was ordered to return to Germany. After arriving in Kiel on 23 September, she was taken into the Kaiserliche Werft (Imperial Shipyard) for an overhaul that lasted until the end of December. She was scheduled to return to the Mediterranean Division, but the Admiralstab (Admiralty Staff) reassigned Dresden to the North American station to protect German interests in the Mexican Revolution. The cruiser Bremen, then in North American waters, was also due to return to Germany, but her intended replacement, Karlsruhe, had not yet entered service. On 27 December 1913, Dresden departed Germany and arrived off Vera Cruz on 21 January 1914, under the command of Fregattenkapitän Erich Köhler. The United States had already sent a squadron of warships to the city, as had several other countries.
The Admiralstab ordered Hertha, which had been on a training cruise for naval cadets, to join Dresden off Mexico. Bremen was also recalled to reinforce the German naval contingent; after arriving, she was tasked with transferring European nationals to German HAPAG liners. Dresden and the British cruiser HMS Hermione rescued 900 American citizens trapped in a hotel in Vera Cruz and transferred them to American warships. The German consul in Mexico City requested additional forces, and so Dresden provided a landing party of a maat (Junior Petty Officer) and ten sailors, armed with two MG 08 machine guns. On 15 April 1914, Dresden steamed to Tampico on Mexico's Caribbean coast. T
SMS Dresden (1907)