The volleyball department was founded in 1919 and was one one of the first in Greece. The first dynamic presence of the team is dated back in the years 1927–29 with many popular players of the time such as the founder Giorgos Kalafatis, the historical member of the board Apostolos Nikolaidis, as well as players such as Aravositas, Goumas, Arg. Nikolaidis, Papageorgiou and Papastefanou. In the following years the interest for volleyball became less until before the WWII when Panathinaikos presented a powerful team with leader players such as Lambrou, Vallidis, Momferatos, Tzoumanis, Proselentis, Lykouris, Kakridis and more.
During the 60’s and 70’s, Panathinaikos' volleyball club won many titles and honors due to the fact that the team roster has always included some of the leading volleyball players and coaches in Greece. The first and most popular generation of players of 60’s was Andreas and Nikos Bergeles, as well as Iliopoulos, Leloudas, Chasapis, Emmanouil, Perros and Fotiou who opened the road for the next generations. Notable coaches of this era was the leading figure of the department Gerasimos Theodoratos, the SerbianSava Grozdanović and later the ex-player of the team Andreas Bergeles.
The most important achievement of the team was the participation in the final of the European Cup in 1980 with Grozdanović as coach and players such as Georgantis, Agrapidakis, Iliopoulos, Papadopoulos, Malousaris, Gkountakos, Astras, Kokkinaras and Koliopoulos. In the following years, Panathinaikos team continued to dominate the Greek championship with Janusz Badora as coach and players such as Kazazis, Tentzeris, Gontikas, Galakos, Dimitriadis, Margaronis, Karamaroudis and Andreopoulos.
Two of the most successful periods have been 1994-95 and 1995-96 seasons, when Panathinaikos won 2 championships in a raw with Stelios Prosalikas as head coach and Andreopoulos, Triantafillidis, Philippov, Spanos, Hatziantoniou, Ouzounof, A. Kovatsef, S. Kovatsef, Karamaroudis, Mavrakis, Konstantinidis, Zakynthinos, Koutouleas, Tonev as players.
In 2004 the team won again the Championship with the ex-player Stelios Kazazis as coach. WIth Dante Amaral as a star-player of the team, they finished again first in 2006, while they reached again the final of the European Cup in 2009.