The 500th SS-Parachute Battalion (German: SS-Fallschirmjägerbataillon 500) was the parachute unit of the Waffen-SS. The idea to form a paratrooper unit within the Waffen-SS allegedly came directly from Reichsführer-SS Heinrich Himmler.
Adolf Hitler supposedly got the idea in September 1943, after Operation Eiche ("Oak"). Operation Eiche was launched on 12 September and included an airborne raid on Gran Sasso. The operation was planned by Kurt Student. During this raid, a group of German parachutists freed deposed Italian dictator Benito Mussolini. Otto Skorzeny took part in the raid by command of German dictator Adolf Hitler. The raid included a daring military-based assault on the Campo Imperatore Hotel at Gran Sasso and managed to rescue Mussolini, only firing a single shot.
Considering that the new Waffen-SS unit of parachutists had to be employed in dangerous actions behind enemy lines, it was decided to extend enlistment to those in the SS disciplinary units which were formed from officers, non-commissioned officers and soldiers who had violated military law. An order of the SS-FHA (the SS High Command) fixed a percentage of 50% for the unit coming from volunteers of Waffen-SS units, the rest from volunteers from the disciplinary units.
The gathering of personnel for the new unit was in Chlum in Czechoslovakia in October 1943. The first commander of the battalion was SS-Sturmbannführer Herbert Gilhofer, coming from the 21st SS-Panzergrenadier Regiment of the 10th SS-Panzer-Division Frundsberg. In November 1943, the battalion began its training in the spa Mataruška Banja, close to Kraljevo, Serbia, with the Luftwaffe Fallschirmschule number 3. The training was completed in the area around Pápa, Hungary at the beginning of 1944.