The BMD-20 was, along with the BM-14 and BM-24, one of a trio of Soviet multiple rocket launchers introduced in the early 1950s to replace the wartime 'Katyusha' family. Like its two contemporaries, the BMD-20 was based on the ZiS-151 6 x 6 truck, which was later upgraded into the ZiL-157. The BMD-20 carries a cage launcher which could fire up to four 200-mm MD-20F rockets. This is considerably less than the 12-round BM-24 despite the larger caliber rockets of the latter, however, the the MD-20F rockets were substantially longer and more destructive, carrying a 30 kg high explosive warhead. They could also be fired at 19 km, nearly twice the range of the BM-24 with a relatively quick reload time of just 6-10 minutes. Like all MRLs based on the ZiS-151/157, the BMD-20 featured armored shutters for the windscreen as well as a pair of stabilizers in the rear. The BMD-20 entered service in the early 1950s where they served for around two decades before being gradually replaced by more modern designs. Unlike its contemporaries, however, it was not widely exported aside from a few clients including Cuba, Ethiopia, and North Korea.

Development of the BMD-20 began in 1947 simultaneously with the BM-14 and BM-24. It received the GRAU index of 8U33. Aside from an upgrade to ZiL-157 trucks, there were no major variants built aside from the original model.