It has a fixed, active electronically scanned array radar antenna instead of a rotating one as with the 707-based Boeing E-3 Sentry.

The 737 AEW&C has also been selected by the Turkish Air Force (under "Project Peace Eagle", Turkish: Barış Kartalı, designated E-7T,[4] the Republic of Korea Air Force ("Project Peace Eye", 피스 아이), and the United Kingdom (designated Wedgetail AEW1).

[6] In 1996, Australia issued a request for proposal (RFP) for the aircraft for the RAAF under Project Wedgetail, which refers to the indigenous eagle.

[12] Other modifications include ventral fins to counterbalance the radar and countermeasures mounted on the nose, wingtips and tail.

[15] In June 2006, the Australian Minister for Defence, Brendan Nelson, stated that the Wedgetail was delayed despite Boeing's prior assurance that work was on schedule.

[16] Boeing announced an 18-month delay due to problems integrating radar and sensor systems, and did not expect delivery until early 2009.

[17] In June 2008, Boeing announced a further delay due to integration issues with the radar and Electronic Support Measure (ESM) systems.

[1] On 1 April 2014, the Wedgetail's first operational sortie occurred in the search for Malaysia Airlines Flight 370, helping control maritime patrol aircraft off Western Australia's coast.

[29] In October 2023, an Australian Wedgetail was deployed to Europe to contribute to international efforts to protect the flow of supplies to Ukraine following the Russian invasion of the country.

[32] Four Boeing 737 AEW&C Peace Eagle aircraft along with ground support systems were ordered by the Turkish Air Force, with an option for two more.

Turkish Aerospace Industries (TAI) is the Peace Eagle's primary subcontractor, performing parts production, testing, aircraft assembly and conversion.

Peace Eagle 2, 3 and 4 were modified and tested at TAI's facilities in Ankara, Turkey, in partnership with Boeing and several Turkish companies.

[38] On 21 February 2014, the first Peace Eagle, named Kuzey (meaning North), was formally accepted by the Turkish Air Force.

Within the scope of modernization, the aircraft will be equipped with IFF Mode 5 Responder, Karetta CRPA Antenna, Mission Computer Hardware developed by Aselsan.

[47] The second aircraft was modified into an AEW&C configuration by Korea Aerospace Industries (KAI), then delivered to Gimhae Air Base in December 2011.

[54] The apparent decision to proceed with procurement without a competition received some criticism, with the Ministry of Defence accused of displaying favouritism towards Boeing,[55] while Saab voiced its opposition to the "non-competitive" deal as it could offer the Erieye system mounted on Airbus A330 MRTT aircraft.

[58] Airframe modification was expected to be performed by Marshall Aerospace, but it withdrew in May 2020, thus Boeing selected STS Aviation Group's UK branch on 20 May 2020.

[64] In February 2023, Air Chief Marshal Michael Wigston stated that the order of three aircraft may gradually rise to five.

[65] In February 2021 General Kenneth S. Wilsbach, the Commander of the United States Pacific Air Forces, proposed that the USAF rapidly acquire E-7s to replace the E-3s deployed to the Indo-Pacific region.

[69][70] In April 2022, the U.S. Air Force announced that the E-7 would replace the E-3, as it "is the only platform capable of meeting the requirements for the Defense Department's tactical battle management, command and control and moving target indication capabilities within the timeframe needed..."[5][71] In 2023, an initial $1.2 billion contract was awarded to develop two new US-specific variants of the E-7.

[78] As of December 2023, Saudi Arabia is in the middle of a two-phase mid-life upgrade to its existing fleet of E-3 Sentry aircraft.