The Kanonenjagdpanzer was developed based on Germany's experience with assault guns and tank destroyers during World War II. The vehicle was developed in the late 1950s by Hanomag and Henschel as part of a new light tank family, and after an initial attempt to mount a 90mm gun on the chassis of the HS-30 armored personnel carrier proved unsuccessful.

The Kanonenjagdpanzer had a suspension with five road wheels per side, three track return rollers, a rear drive sprocket, and front idler, and was powered by a 600hp diesel engine.

The main armament comprised a 90mm gun mounted in the hull glacis, with an elevation of -8 to +15 degrees, and traverse limited to 15 degrees to either side of center. The main gun's combat load was 50 rounds of High Explosive Anti-Tank (HEAT) ammunition. Secondary armament comprised a 7.62mm coaxial machine gun, plus a machine gun mounted on the top of the hull for anti-aircraft defense.

In 1983, 162 of these vehicles were converted into Jaguar2 self-propelled ATGM carriers mounting the TOW ATGM. These vehicles were further upgraded with add-on armor over the glacis plate and hull sides.

An additional 450 vehicles were converted into fire support team and command vehicles.

In 1972, the Belgian Army bought 80 Kanonenjagdpanzers that were upgraded with laser rangefinders, improved sight, a new fire control system, and two 60mm Lyran battlefield illumination launchers.

The vehicle on display is a prototype II vehicle that differs slightly from the main production vehicles in that it has a vertical rear hull and six, rather than five, road wheels.