[4] The founders, John Britten[5] and Desmond Norman, had observed the rapid growth of the commuter airline sector, and concluded that capacity was of a higher value to these operators than either range or cruising speed, thus the Islander emphasized payload over either of these attributes.

[3] Through the use of low wing- and span-loading to generate greater effectiveness than conventional counterparts, the Islander could lift considerably heavier payloads than the typical aircraft in its power, weight or cost classes.

[4] Initial production of the Islander started at the Britten-Norman factory at Bembridge on the Isle of Wight; however, within a few years the company found that it could not produce the aircraft at a sufficient rate to keep up with the customer demand.

[2][10] To expand production, a contract was placed with Intreprinderea de Reparatii Material Aeronautic (IRMA) of Romania, initially to assemble kit-form aircraft, which were then sent to the UK for completion.

Modifications included the addition of underwing hardpoints for armaments/equipment, and the main cabin area being fitted out for light troop transport and support aircraft duties.

Despite the relative success of the Islander, Britten-Norman experienced wider financial difficulties during the late 1960s, ultimately resulting in the company entering receivership in October 1971.

[2][13][14] Fairey Aviation set about the development of a more powerful model, the Turbo Islander, equipped with a pair of Lycoming LTP101 turboprop engines.

[2][4] Another development was a turbo-normalizing system with RaJay turbocharger for the -2, -3, -6, -8, and -9 models allowing full power up to 14,000 feet (4,300 metres) with attendant increase in true airspeed and takeoff and climb performance.

[4] In 1970, to improve hot-and-high performance, more powerful Lycoming O-540-K1-B5 engines were made available, alongside optional tiptanks and an elongated nose to house baggage.

[19] In December 2006, aerospace publication Flight International observed that: "The only civil aircraft that remains in production in the UK is the tiny Britten-Norman Islander".

New aircraft, to be produced at two per year initially and rising thereafter, are expected to continue the practice of incorporating progressive improvements to the current design.

[4][9][25] The rectangular cross section fuselage, which is furnished with a conventional tail unit and fixed tricycle landing gear, can accommodate a single pilot and up to nine passengers in a commuter configuration, or operate in a mixed cargo/passenger capacity.

The cabin can be rapidly reconfigured, allowing for a single aircraft to undertake a diverse range of tasks within a minimal period of time.

[26] The original Islander was designed with an emphasis upon providing ease of access within the short haul sector to remote locations as a safe, efficient, and profitable transport aircraft.

[25] The low load height and wide side doors provide for easy access for passenger and cargo operations, while the aircraft's ability to maintain a high takeoff frequency has led to the type's use for parachuting.

[27] Designed as a small and inexpensive commuter/utility aircraft, various cabin configurations and equipment loadouts are available to suit a wide variety of different purposes, including charter flights, scheduled flights, agricultural uses, aerial firefighting, air freight VIP/executive transport, aerial surveillance, air ambulance, paradropping, and law enforcement.

[26] Later versions of the Islander offer various options, including enlarged bay doors, 3-bladed scimitar propellers, low drag fairings, modern interior, ergonomic leather seating, in-flight entertainment systems, and alternative seat arrangements; underwing hardpoints can also be installed for carrying pod, spray booms and other external stores.

[35] On August 28, 2023, Torres Strait Air stated that it is investing $16.3 million to upgrade its fleet with ten new Britten-Norman Islander aircraft.