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The Carus Gallery was founded by Dorothea Carus Isserstedt (1914-2002). The gallery's primary interest was in European Graphic Arts, specifically German Expressionism, and Russian Constructivism. The gallery exhibited works by Alexander Archipenko, Ernst Barlach, Max Beckmann, Heinrich Campendonk, Otto Dix, Lyonel Feininger, Natalia Goncharova, George Grosz, Erich Heckel, Alexej Jawlensky, Wassily Kandinsky, Ernst Ludwig Kirchner, Paul Klee, Gustav Klimt, Max Klinger, Kathe Kollowitz, El Lissitzky, Kazimir Malevich, László Moholy-Nagy, Marlow Moss, Otto Mueller, Edvard Munch, Emil Nolde, Christian Rohlfs and Egon Schiele.
In 1968, following the death of her parents, Isserstedt opened the Carus Gallery, which was located on the ground level of her home at 243 E 82nd street in New York. The gallery was relocated to Madison Avenue in 1974 and finally to 1044 Madison Avenue where it remained until Isserstedt's retirement in 1996.
Dorothy was born in 1914 in Elberfeld, Germany. She studied art history and archeology at Freiburg University, receiving a doctorate in 1944. Towards the end of World War II Dorothy escaped to East Germany where she settled in Hamburg and found work as a supervisor with the British Forces Network. In 1952 she immigrated to Yorkville, NY where she worked in her father's print and framing shop. Dorothy became an American citizen in 1957.