At the beginning of the 1980s, the JSDF wanted to replace its outdated Type 60 and Type 73 APCs with more modern IFVs, similar to the American Bradley and the German Marder. The JSDF drew up a set of requirements and tasked the Mitsubishi company with developing a suitable replacement.

In 1984, funding was approved to build four different prototypes, all of which underwent testing until 1986. By 1989, one prototype design was selected and was adopted within the armed forces under the designation of Type 89.

Initially, the JSDF estimated the need for about 300 Type 89s to be built. However, the end of the Cold War in the 1990s combined with a limited budget, prevented a rapid mass-production of the Type 89 to take place. In fact, production was proceeding at a very low rate, with just over 50 vehicles entering service with the JSDF by 1999.

Although production of the Type 89 was discontinued in 2004, the vehicle is still in service with the JSDF today. As of 2016, a total of 68 vehicles were present in the JSDF’s inventory from the initially planned 300.