[citation needed] The first prototype (registration N13458) flew on 27 April 1953, and by the end of 1955, two machines had been delivered to the Army (52-5779 and 52-5780).

Eventually, the Army concluded that they had no requirement for an additional piston-powered helicopter model in this size category, and no further order was placed.

[citation needed] Doman continued with development, building another LZ-5 aircraft in a joint venture with Fleet in Canada.

This aircraft was also modified with the installation of full blind flight instrumentation, which was demonstrated extensively in the effort to sell it as a trainer.

[citation needed] After the demise of Doman Helicopters Inc. in 1969, the second Army prototype was taken to California for display at the Hiller Aviation Museum, founded by Stanley Hiller, Jr. That helicopter was returned to Connecticut in 2009 and is on display at the New England Air Museum in Windsor Locks, Connecticut.