Radu Manicatide in 1967, at IMFCA Bucharest (Institutul de Mecanica Fluidelor si Cercetari Aerospatiale - Institute of Fluid Mechanics and Aerospace Research).

A small series of 20 aircraft was produced in 1968 and 1969, plus a single example of a trainer aircraft designated IAR-821B that had a second cockpit installed in place of the IAR-821's chemical tank, and was equipped with a new chemical tank of smaller capacity.

The front fuselage had aluminium panels, while the rest of the surface was plywood covered with fabric.

The propulsion was provided by an Ivchenko AI-14 RF, a single row air-cooled 9-cylinder radial capable of delivering 300 hp (221 kW), located at the apex of the front fuselage contained in a NACA cowling and combined with a three blade propeller with fixed pitch.

Romanian Utilitary Aviation - the only operator of the IAR-821 Data from Jane's All The World's Aircraft 1971–72[1]General characteristics Performance