The SED was founded in April 1946 in the SBZ (Soviet Occupied Zone) by the merge of the communist KPD and the social democratic SPD. Both parties did not want this merge ,but they were forced to by the Soviets. In the beginning both parties were equally strong, but till 1955 the party was formed in to a party after Soviet model.
In the DDR(established 1949) the SED was the only real political force, as elections were manipulated and members of other parties (the so-called Blockparteien) were suppressed. The DDR was actually reigned by the institutions of the DDR. These were the Zentralkomitee (ZK), which was elected by the party convention and its organs the Politbüro and the Secretary (led by the General-Secretary, which were Walter Ulbricht (19501971), Erich Honecker (19711989) and Egon Krenz (1989).)
As the DDR broke down in 1989, the SED renamed itself, first into SED-PDS and later into PDS and elected Gregor Gysi as the new party leader.