[7] Derived from the AGM-158B JASSM-ER, the LRASM was intended to pioneer more sophisticated autonomous targeting capabilities than the U.S. Navy's current Harpoon anti-ship missile, which has been in service since 1977.

In December 2013, DARPA publicized its intent to award a sole-source follow-on contract to Lockheed Martin for continued maturation of the LRASM subsystems and system design, which will be transitioned to the Navy.

In June 2014, GAO denied the protest, holding an award to any other source would be likely to cause substantial duplication of costs that were not expected to be recovered through competition, and unacceptable delays in meeting the Government's needs.

[8][9] The Navy was authorized by the Pentagon to put the LRASM into limited production as an operational weapon in February 2014 as an urgent capability stop-gap solution to address range and survivability problems with the Harpoon and to prioritize defeating enemy warships, which has been neglected since the end of the Cold War but taken on importance with the modernization of the People's Liberation Army Navy.

In March 2014, the Navy said it will hold a competition for the Offensive Anti-Surface Warfare (OASuW)/Increment 2 anti-ship missile as a follow-on to LRASM to enter service in 2024.

It can be directed to attack enemy ships by its launch platform, receive updates via its datalink, or use onboard sensors to find its target.

[18] To ensure survivability to and effectiveness against a target, the LRASM is equipped with a BAE Systems-designed seeker and guidance system, integrating jam-resistant GPS/INS, an imaging infrared (IIR infrared homing) seeker with automatic scene/target matching recognition, a data-link, and passive electronic support measures (ESM) and radar warning receiver sensors.

Automatic dissemination of emissions data is classified, located, and identified for path of attack; the data-link allows other assets to feed the missile a real-time electronic picture of the enemy battlespace.

Aside from short, low-power data-link transmissions, the LRASM does not emit signals, which combined with the low-RCS JASSM airframe and low IR signature reduces detectability.

[28] Some naval advisors have proposed increasing the LRASM's capabilities to serve dual functions as a ship-based land attack weapon in addition to anti-ship roles.

Captive carry flight tests of LRASM sensors began in May 2012; a missile prototype was planned to fly in "early 2013" and the first canister launch was intended for "end 2014".

[31] On 1 October 2012, Lockheed received a contract modification to perform risk reduction enhancements in advance of the upcoming flight test of the air-launched LRASM-A version.

[33] On 3 June 2013, Lockheed successfully conducted "push through" tests of a simulated LRASM on the Mk 41 Vertical Launch System (VLS).

The sensor is designed to enable targeted attacks within a group of enemy ships protected by sophisticated air defense systems.

The company-funded test showed the LRASM, fitted with the Mk 114 rocket motor from the RUM-139 VL-ASROC, could ignite and penetrate the canister cover and perform a guided flight profile.

Tied to a Tactical Tomahawk Weapon Control System (TTWCS) for guidance and boosted by the Mk 114 motor, it flew a planned, low-altitude profile to its pre-determined endpoint.

[60][61] On 7 February 2020, the U.S. Department of State announced it had approved a possible foreign military sale to Australia of up to 200 LRASMs and related equipment for an estimated cost of US$990 million.