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Developed in 1938 through 1941 on the basis of the M2. Mass-produced from 1941. More than 13,000 vehicles in various versions were built, from the M3 to the M3A3, all of which were supplied to almost every allied nation under Lend-Lease. The M3 tanks were designated Stuart I by the British, while the M3A1 version received the designation Stuart III. The M3 first saw action in the battle at Sidi Rezegh.

Developed under the program for improving the maneuverability of the T-26 light tank through redesigning its chassis to a wheeled caterpillar type. The prototype was built in 1935. The vehicle saw service on February 29, 1936 after a series of modifications. At least four vehicles from the experimental batch underwent trials in 1937, but the production was discontinued due to transmission faults and high cost. The manufactured vehicles were used during the Winter War and World War II.