[1] The Demon was developed during the late 1940s and early 1950s to fulfill a United States Navy requirement for a high-performance swept wing naval fighter to succeed the F2H Banshee.

The Demon was originally designed to be powered by the Westinghouse J40 turbojet engine, which suffered severe problems including low thrust output and poor reliability, and was ultimately abandoned after the matter became politically controversial in 1955.

Both it and the Crusader were replaced on Forrestal-class and similar supercarriers by the more capable and versatile McDonnell Douglas F-4 Phantom II, which bears a strong family resemblance, as it was conceived as an advanced development of the Demon.

In order to fulfil the U.S. Navy's requirements, McDonnell agreed to power the aircraft with the Westinghouse J40 engine which was then under development.

Having gained the interest of U.S. Navy officials, McDonnell was issued with a development contract to produce two XF3H-1 prototypes on 30 September 1949, albeit as a fallback measure to the unconventional Douglas F4D Skyray.

[15] The unexpected combat debut of the MiG-15 during the Korean War motivated the U.S. Navy to place the Demon as a top priority, having observed the MiG to have considerably outclassed both the Panther and Banshee; the only American fighter then in service that could equal the MiG was the North American F-86 Sabre, which was only operated by the United States Air Force.

[6] Seeking to better respond to the MiG, the U.S. Navy pushed for the aircraft to be heavily redesigned, reorienting it from the short-range interceptor mission once envisioned towards a medium-range all-weather fighter; adapting the design necessitated the addition of 7,000 Ibs.

[2][19] It quickly proved to be relatively easy to fly, fairly maneuverable, and the controls were responsive, yet it was also severely underpowered, particularly impacting high altitude flight.

[21] The first test flights of the operational design did not occur until January 1953, by which time the conflict in Korea was drawing to a close.

[22][13] The airframe's use of an uncommon annular air intake, which inherently results in relatively poor pressure recovery, may have also contributed to the performance difficulties.

[16][24] Instead, the U.S. Navy opted to persist with the J40 engine in the hope that development of a more powerful version, the J40-10, would proceed rapidly; instead, Westinghouse proved unable to smoothly progress on the project and the issue became increasingly politically charged as time went on.

The F4D Skyray had been designed to accept larger engines in case the J40 did not work out, and was eventually powered by the Pratt & Whitney J57.

[1] In service, the J71 proved problematic, providing insufficient power for an aircraft of the Demon's size, while also suffering from frequent flameouts and compressor stalls.

Cannons were not used in carrier air defense applications, but they were installed and armed when situations (such as the Cuban Missile Crisis) dictated, and where the aircraft might be deployed against surface targets.

[1] The additional range provided by external fuel tanks was relatively small due to parasitic drag.

[40] Developed during the Korean War to counter the MiG-15, it did not claim any aerial victories either with missiles or during dogfights, although it flew over Lebanon and Quemoy during 1958.