The effort began in earnest in 1948, when helicopter manufacturer Kellett Autogiro Corporation sold their latest design to Hughes for production.

Built in 1956, and entering production in 1957, it served to capture a large portion of the commercial market for Hughes.

In May 1965, the company won the contract for a new observation helicopter for the U.S. Army, and produced the OH-6 Cayuse (Hughes Model 369).

That same year, the company was honored by the National Aeronautic Association with the prestigious Collier Trophy.

In January 1984, Hughes Helicopters, Inc. was sold to McDonnell Douglas by Summa Corporation, under the parent's efforts to streamline its focus and interest in real estate development.