Often referred to as the prototype to the Gloster Grebe,[1] the Grouse originally built as an experimental aircraft and then later developed as a trainer.

[2] Despite its compact design and maneuverability, the Grouse was not in itself a commercial success, although it formed the basis for the Gloster Grebe and Gamecock fighters which were used by Britain's Royal Air Force into the 1930s.

[3] The prototype Grouse Mk I (registration G-EAYN) first flew in 1923,[5] proving during testing that Folland's theories were correct.

After evaluation by the RAF, orders were placed for three fighter derivatives, to be powered by Armstrong Siddeley Jaguar radial engines, designated Gloster Grebe.

[7] The Grouse II was unsuccessful in meeting the RAF's needs, a new version of the Avro 504, the 504N, also powered by the Lynx engine, being preferred.