As a born Beta Werewolf in the centuries-old Hale Pack, Derek grew up knowing about the supernatural and embracing his lycanthropy. However, after the majority of his family was killed in a house fire set by Kate Argent and her co-conspirators when he was in his late teens, Derek and his sister Laura fled to New York for several years before they were both lured back home in late 2010 or early 2011. Shortly afterward, Laura was murdered in order for her killer to steal her Alpha powers, forcing Derek to track and battle against this mysterious and vengeful new Alpha, only to learn that it was actually his uncle Peter Hale, who sought to create a new pack with which to get revenge on those who orchestrated the Hale House Fire. Upon learning that Peter's killing of Laura was premeditated and not an accident like he claimed, Derek teamed up with Peter's first Beta, Scott McCall and his friends, along with Hunters Allison and Chris Argent, to kill him. It was Derek that gave him the killing blow in retribution for killing Laura, which caused Derek to gain Peter's Alpha status.