In 1923 Dieterle used his own money to make his first film, Der Mensch am Wege. Based on a Leo Tolstoy short story, the film co-starred a young Marlene Dietrich. Years later Dieterle said of the film "we were just four or five very young, enthusiastic, and revolutionary people who wanted to do something different. We brought it out; it didn't make any money, but was shown and it was an interesting experiment." In 1924 Dieterle left Reinhardt's company and formed his own theater company in Berlin, although it was unsuccessful and short lived. He also returned to film acting for several years and appeared in such notable German films as Das Wachsfigurenkabinett (Waxworks) (1924) and F. W. Murnau's Faust (1926). In 1927, Dieterle and his wife formed their own production company, Charrha-Film, and Dieterle returned to directing films, such as Sex in Chains (1928) in which he also played the lead role.