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In the autumn of 1998 Lauri Saatpalu, Peeter Rebane and Tiit Kikas formed Dagö. The endeavours of the always improvising etno-folk trio culminated with an album by the summer of 2000, released by Hyperrecords, the only label brave enough to take the risk. The album received the Folk/Etno Album Of The Year award. On the concert stage the trio was joined by Toomas Rull (drums) and Raul Vaigla (bass).

In the summer of 2001 Dagö won the grand prize of the "Midsummer Night's Improvisational Festival" in Pärnu and in autumn Dagö was the warm-up artist for the Jethro Tull concert in Tallinn.

Early in 2002 Tiit Kikas left the group. Producer and musician Kristo Kotkas became the "invisible member" of the band. In summer their second album "Food Club" ("Toiduklubi") was released on the ground of which Dagö was handed the Group Of The Year award. Taavi Kerikmae on the keyboard joined the band in the same year.

In the summer of 2003 Dagö went on a tour with Ultima Thule and in autumn their third album "The Mice In The Wind" ("Hiired Tuules") was released and they received the Album Of The Year award. Drummer Petteri Hasa was welcomed to the band.

In the summer of 2004 Dagö toured with Singer Vinger.

Dagö's fourth album "The Picture Perfect Man" was released in March

In the summer of 2006 Dagö toured with even bigger setup, which included Hele Kõre and Evelin Pang as background singers. Ursula was the warm-up band for the concert.

In the summer of 2007 Dagö gave a concert on a rock festival called Rabarock and another one in Palmse Manor.

Dagö's fifth album was released on the 29th of March in 2008 and it's called "Smoothing Caress" ("Möödakarvapai").

Dagö's sixth album was released on 2011, called "Plan Delta" (Plaan Delta)

The music of Dagö is somewhat light-sounding and warm, whereas the lyrics of leader Lauri Saatpalu draw attention to the problems of society: narcotics, general loneliness, powerty, single parents, etc. The lyrics tend to be quite difficult and complex.

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