Dirk Pauwels did not receive any drama training, but ended up in theater when he became acquainted with Eric De Volder at the end of the 1970s through the visual arts. Around 1979 he became a member of De Volders performance group Parisiana. Pauwels got to know Josse De Pauw there. Together with De Volder and Pat Van Hemelrijck they founded Sierkus Radeis. The small company made wordless "cartoon theatre", which quickly managed to appeal to an international audience.

In 1984 Pauwels started working as a director for Nieuwpoorttheater, which would later become the operating base of his company Victoria. As director of Victoria, he produced performances by Alain Platel, Arne Sierens and Josse De Pauw. In 1996 he received the Culture Prize of the City of Ghent for his achievements in the performing arts.

From 2008 to 2011, Pauwels led the production house CAMPO. He then started De 3e Colonne, a company that presents living room performances.