[2] The aircraft was Boeing's proposal to meet the demand from the US military for unmanned drones designed to provide advanced intelligence and reconnaissance work, driven by the combat conditions in Afghanistan in particular.

Boeing worked closely with Ball Aerospace, Aurora Flight Sciences, Ford Motor Co. and MAHLE Powertrain to develop the Phantom Eye.

[6] The demonstrator was shipped to NASA's Dryden Flight Research Center at Edwards Air Force Base, California, for ground tests.

[9][10] On February 6, 2013, the Phantom Eye completed taxi testing at Edwards Air Force Base in preparation for the second flight.

[12] On 6 June 2013, Boeing was issued a $6.8 million contract by the U.S. Missile Defense Agency to install an unidentified payload on the Phantom Eye demonstrator.

[16] In February 2014, the Phantom Eye was promoted to experimental status by the Air Force's 412th Operations Group on recommendation from NASA’s Dryden Flight Research Center.

Boeing had been in talks with military and commercial organizations in hopes of returning the aircraft to service after flight trials had concluded in September 2014 after conducting nine sorties, but did not have success.

To be able to run in the oxygen starved atmosphere at 65,000 ft, the engines featured a multiple turbocharger system that compresses that available low density air and reduces the radiated infrared heat signature to increase its stealth properties.

[20] Although the primary role of the Phantom Eye was airborne surveillance, Boeing pitched it as a communications relay for the U.S. Navy.

A pair of Phantom Eyes, one relieving the other after days of constant flight, could provide the Navy with continuous long range communications.