Dagö was formed in 1998 by Lauri Saatpalu, Peeter Rebane and Tiit Kikas. Dagö is the old name of the Estonian island Hiiumaa. In the year 2000 the band published its first album called Dagö. For this album they received the Folk/Ethno Album Of The Year award in Estonia. Then Toomas Rull (drums) and Raul Vaigla (bass) joined the band. In 2001, Dagö won the grand prize of the Midsummer Night’s Improvisational Festival in Pärnu. Tiit Kikas left the group in 2002. Producer and musician Kristo Kotkas became the “invisible member” of the band. The second album Toiduklubi (Food Club) was released in the same year. Taavi Kerikmäe on the keyboards joined the band. In 2003, their third album Hiired Tuules (Mice in the Wind) was released and Drummer Petteri Hasa joined the band. The fourth album Joonistatud mees (The Picture Perfect Man) was released in 2004 and the band got the folk rock Group Of The Year award of Estonia. The fifth album Möödakarvapai (Smoothing Caress) was published in 2008.