Following on from his earlier design (the DH-1), August Häfeli designed a more conventional biplane for reconnaissance duties designated the Häfeli DH-2. It was a two-bay of wood and fabric construction, powered by a 100 hp (75 kW) Mercedes D.I engine, the next five were fitted with an Argus As II water-cooled inline engine. The engine required a large flat radiator which was mounted beside the front cockpit. Performance was disappointing and the aircraft did not go into production. An improved version, the Hafeli DH-3 was developed.
The six DH-2s built during 1916 were used to train pilots and observers until they were withdrawn from service in 1922.