Design had begun on the McDonnell F2H Banshee even before its predecessor, the FH Phantom, had entered service. The F2H was basically an enlarged version of the Phantom with more powerful engines, wingtip fuel tanks, and no dihedral on the tailplane and quickly gained a favorable reputation for being a very reliable aircraft and was also further developed as a radar equipped night fighter and a reconnaissance platform with cameras (both radar and cameras being fitted in a lengthened nose). Along with the Panther, the Banshee was one of the two major carrier-based fighters used by the US Navy during the Korean War where they were used mostly for ground attack missions and close air support. Front line service with the USN ended in 1959 although Reserve units flew them until the mid-1960s. Its only foreign operator was the Royal Canadian Navy.

Maiden flight of the XF2D-1 took place on 11 January 1947 after which it entered production as the F2H-1 (redesignated to avoid confusion with Douglas). The F2H-2 featured more powerful engines, a longer fuselage, and wing tip tanks and was further developed into the F2D-2N night fighter and -2P photo reconnaissance aircraft. Later versions included the F2H-3 night and all-weather fighter (these were used by the Royal Canadian Navy) and, finally, the F2H-4 which had upgraded radar and engines. Post-1962 reserve units were redesignated F-2C (F2D-3) and F-2D (F2D-4).