The Nazi Zombies are the remains of a Nazi occupation in which Herzog and his men undertook a campaign of brutal mutilation, torture and terrorism upon the local population which climaxed in a mass-looting of the area near the end of the war.
The mass-looting finally caused the locals to revolt against their tormentors and gathering makeshift weaponry they massacred the Nazis that had killed so many of their friends and family, forcing Herzog and his men to flee into the snowy mountains with their stolen treasure, where they died of exposure.
Yet in death Herzog managed to survive as a demon zombie and resurrected the other Nazis to fight by his side, seeking out those who dared to trespass upon his land or steal his loot.
- Most of the zombies wore traditional German (Nazi era) uniforms but Herzog himself (and a group of around four "elite officers") were dressed in the manner of S.S. - which explains the brutal nature of their rule as the S.S. was one of Nazi Germany's most brutal chapters, often involved in genocide and state terrorism.
- Due to Herzog's rank he had at least 300 men under his command, which explains why the number of Nazi Zombies in the movie were so high - how Herzog is able to keep control over all these souls after death is not explained.