Developed in 1942, it resulted from the Luftwaffe's request for a medium bomber, a contest in which Dornier, Junkers, Heinkel, and Blohm & Voss competed.
It was to have a stepless cockpit housing three of the four crew, and was to be fitted with Kuto-Nase cable-cutters on the nose and along the leading edge of the wing to defend against barrage balloons.
The pilot's seat and tail gunner's positions were to be armored, and although unpressurized, the crew would have been able to operate at high altitude with oxygen masks.
The glazed nose and the propellers would have had de-icers, and inflatable one-man dinghies would have been provided in case the aircraft ditched in the sea.
[2] However, the Do 417's performance was estimated to be worse than that of the competing Junkers Ju 188, and the Do 417 was rejected so the aircraft was never built.