The Ar 197 had its origin in the requirement for a fighter capable of operating from the planned (but never completed) German aircraft carriers Graf Zeppelin and Peter Strasser.

The second prototype, the Ar 197 V2, was similar to the V1, but was powered by a BMW 132Dc radial engine, and was fitted with naval equipment, including an arrester hook and catapult spools.

The V3 was also fitted with racks under the fuselage which could carry four 50 kg (110 lb) bombs, an auxiliary fuel tank, or a smoke-laying canister.

By the time the Graf Zeppelin was to have been completed, biplanes such as the Ar 197 would have been hopelessly outclassed as fighters.

Data from Aircraft of the Third Reich Vol.1[1]General characteristics Performance Armament