The so-called "Freital group" -- named after the members' hometown outside Dresden, the capital of the eastern state of Saxony -- consists of seven men, aged 19 to 39, and a 28-year-old woman.
Prosecutors say they staged five attacks with explosives between July and November 2015 targeting refugee housing and leftwing groups, causing two injuries.
Charges against them include forming a terrorist group, attempted murder and grievous bodily harm.
"They wanted to create a climate of fear and repression," federal prosecutor Joern Hauschild told the court.
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Expecting a long trial, authorities spent five million euros ($5.3 million) fitting out a specially constructed courtroom, including on-site prison cells, in a structure on the outskirts of the city originally built to house refugees.
With anti-migrant sentiment high across the former communist East, the hearings were being held under tight security.
Dresden in particular has been a focal point for xenophobic groups as the home of the anti-Islam street movement Pegida.
And the neighbouring town of Freital was already making headlines in the summer of 2015, as images of rage-fuelled demonstrations against "criminal foreigners" and "asylum-seeking pigs" were beamed around the country.
Prosecutors say the defendants went to the Czech Republic and secured "a large quantity of explosives", planning to use them against refugee housing and the "homes, offices and vehicles" of local left-wingers.
The charge sheet includes an attack on a car belonging to the leader of far-left party Die Linke in Freital on the night of July 27, 2015, in which no one was hurt.
On the night of September 19, the group allegedly flung an explosive through the kitchen window of a refugee home.
The following night, the group allegedly threw stones and home-made devices containing foul-smelling butyric acid at a social housing project, harming one of the inhabitants.