It will look actions taken after the US President issued the controversial executive order stopping people from seven majority-Muslim countries from entering America, the DHS Inspector General's Office said.
The review comes after several people alleged they were unlawfully detained by US Customs and Border officers, who began enforcing the ban as soon as it was announced.
They were alleged to have continued to stop people entering the country after a federal judge blocked the order.
The Inspector General's office said the review was "initiated in response to congressional requests and whistleblower and hotline complaints".
It added that the review would include an examination of “DHS's adherence to court orders and allegations of individual misconduct on the part of DHS personnel”.
As a result of confusion and conflicting guidance, border officers allegedly trapped green card holders along with people who had valid visas.
Some travellers who were in the air when Mr Trump signed the order were not able to enter the country when they landed. Some were detained and others were sent back to where they flew in from.
Protesters quickly descended on airports to oppose Mr Trump's ban, and lawyers offered free representation to people being held or facing deportation.
A day after the order was issued, Judge Ann Donnelly of the federal district court in Brooklyn ordered an emergency stay, blocking the deportation of any individual with a valid visa being held in an airport in the United States.
The controversial orders Donald Trump has already issued
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“I think the government hasn’t had a full chance to think about this,” Ms Donnelly told the courtroom.
But despite three other judges ruling the same way over the course of the weekend, there were still concerns on Sunday and Monday that border officers were not complying and had continued to detain people.
Although the order resulted in widespread chaos, Mr Trump said he felt the implementation of his ban “was working out very nicely”.
The President added that while there is “compassion to those fleeing oppression”, his first priority was to keep the nation safe.
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