Shadow entered Formula One for 1973 after building a reputation in North American sportscar competition. Tony Southgate drew the DN1 around an aluminum monocoque chassis with double wishbone suspension at all four corners, powered by a 2,993 cc Ford Cosworth DFV V8. Having spent his previous years working with the BRM V12 — a smooth-revving unit with relatively low vibration — Southgate admitted he had not accounted sufficiently for the flat-plane crankshaft V8's stronger vibration pulses. This oversight translated into persistent reliability problems, particularly acute at the beginning of the season. The works cars ran in an all-black livery with sponsorship from UOP (Universal Oil Products).
Shadow missed the opening two rounds of the 1973 season but arrived at the South African Grand Prix with two entries. The team's lead driver was Jackie Oliver, a veteran of both BRM and Team Lotus, partnered by George Follmer, an accomplished sportscar racer making his Formula One debut. Despite his inexperience in Formula One machinery, Follmer was immediately competitive: he finished sixth in South Africa and third in the next round, results that placed the new team firmly on the radar of the paddock. Oliver matched that achievement later in the year with a third place in Canada. Brian Redman drove a third entry in the season finale but failed to add to the team's points tally. Shadow finished the 1973 season in eighth place in the Constructors' Championship with nine points — a respectable debut for a team that had only missed the first two rounds.
For the start of 1974, new signing Jean-Pierre Jarier was forced to race the DN1 for the first two events while the new Shadow DN3 was completed. He retired from both races before switching to the updated car.
Alongside the works entries, Graham Hill purchased a Shadow DN1 during 1973 to run under his newly established privateer squad, Embassy Racing. The car appeared in a white livery with a red band echoing the packaging of Embassy cigarettes, the team's title sponsor. Hill himself drove the sole entry but could not unlock the pace needed to score points. His best result with the DN1 was ninth place at the Belgian Grand Prix. For 1974, Embassy Hill moved to Lola chassis and did not continue with the Shadow.
The DN1's significance lies in its role as the machine that established Shadow as a credible Formula One constructor. Follmer's early podium and Oliver's Canadian result demonstrated that the team, despite its rookie status and the DN1's reliability troubles, could compete at the front of the midfield. The car laid the groundwork for the more polished Shadow DN3 and the subsequent Shadow DN5, which would eventually challenge for pole positions and race victories later in the decade.