[1] The Ar 196 was designed in response to the Kriegsmarine's requirement to replace the Heinkel He 60 biplane after the intended successor, the He 114, had proved to be unsatisfactory.

The aircraft was commonly used by numerous coastal squadrons, and as such continued to perform reconnaissance missions and submarine hunts into late 1944 across the Mediterranean, Aegean, and Black Seas.

[3] By early 1935, it was determined that the He 60's performance was lacking,[4] thus the RLM requested that Heinkel design a replacement aircraft, resulting in the He 114.

However, the aircraft proved to have only slightly better performance than the He 60 while its sea-handling was deemed to be poor and it did not meet strength requirements for catapult launches.

[8] Hydronalium, an alloy known for its resistance to corrosion in maritime environments, was extensively used throughout the aircraft The interior space of the floats was used to house fuel.

[10] Once its use in the flight test programme had been completed, Arado begun rebuilding V1 with the intention of attempting to set a new air speed record in its category; alterations included the installation of a more powerful BMW 132SA radial engine, a new low-profile canopy, and various aerodynamic refinements to the airframe.

Testing revealed that, in comparison to the Fw 62, the Ar 196 was the superior aircraft, possessing lighter handling qualities, higher loading, a more rugged design, and better flight characteristics.

The addition of various weapons was a result of operational experiences where the aircraft had encountered enemies and found the absence of such armaments to be less than satisfying.

[1] Intended to be exclusively operated from the Kriegsmarine's capital ships, changes involved the strengthening of the airframe, the addition of another radio, and substituting propellers to a VDM model.

The final production version was the A-5 from late 1941, which changed radios and cockpit instruments, switched the rear gun to the much-improved MG 81Z with 2000 rounds of ammunition, retrofitted the existing cannon to the MG FF/M with extended 90 round magazines, added armour protection for the pilot and observer and strengthened the airframe.

[16] Arado also adjusted their own manufacturing arrangements, intentionally decentralising and dispersing work wherever possible to minimise the impact of strategic bombing.

[citation needed] The aircraft became a staple of coastal squadrons, and as such continued to fly reconnaissance missions and submarine hunts into late 1944 across various theatres, including the Mediterranean, Aegean, and Black Seas.

The Ar 196 was involved in two particularly notable operations, these being the capture of HMS Seal[24] and the interception of Royal Air Force Armstrong-Whitworth Whitley bombers.

[16] Owing to its good handling on water, the Finnish Air Force used Ar 196 A-3s which were later upgraded to A-5s in mid-1944 for reconnaissance as well as supply runs, several troops could fit inside its fuselage.

The aircraft were painted in Japanese livery and were operated by Luftwaffe pilots under the command of Oberleutnant Ulrich Horn.

The aircraft was shortly thereafter crashed by a British pilot while on transit to the Helensburgh naval air base for testing.

[31] The Aircraft Historical Museum, Sola, Norway, has on display an Ar 196 A-2 fuselage frame raised from the wreck of the German cruiser Blücher in Oslofjord.

A number of wartime German aircraft have been recovered from the lake, but the Ar 196 remains undisturbed as its crew were killed when it crashed there in 1940 and it has the status of a war grave.