Designed by Fairchild Aircraft as a replacement for current primary trainers, the XNQ-1 featured a controllable-pitch propeller, flaps, electronically operated retractable landing gear and all-metal skin with fabric-covered rudder, ailerons and elevators.

Its unobstructed bubble canopy provided instructors and students seated in tandem with good visibility, and its cockpit instruments were arranged to match those found in contemporary jet fighters.

Delivered to the U.S. Navy in 1947 for trials, they were rejected due to problems with exhaust fumes leaking into the cockpit.

75726), with a larger stabilizer, was evaluated by the United States Air Force in 1949 as a replacement for the AT-6, with the USAF selecting it on 24 March 1949 as a primary trainer.

Fairchild dropped plans to develop the design as the company concentrated on other production contracts, including the C-119 Flying Boxcar.