[1] The Ki-32 was developed in response to a May 1936 Imperial Japanese Army specification to replace the Kawasaki Ki-3 light bomber with a completely indigenously designed and built aircraft.

The specification called for a top speed of 400 km/h (250 mph) at 3,000 m (9,800 ft); normal operating altitude from 2,000–4,000 m (6,600–13,100 ft), the ability to climb to 3,000 m (9,800 ft) within 8 minutes and an engine to be selected from the 825 hp (620 kW) Mitsubishi Ha-6 radial, 850 hp (630 kW) Nakajima Ha-5 radial, or 850 hp (630 kW) Kawasaki Ha-9-IIb liquid-cooled inline engines, a normal bomb load of 300 kg (661.4 lb) and a maximum of 450 kg (992.1 lb), one forward-firing machine gun and one flexible rearward-firing machine gun, the ability to perform 60-degree dives for dive bombing, and a loaded weight less than 3,300 kg (7,275.3 lb).

[3] Being very similar in layout and performance, the main difference between the Kawasaki Ki-32 and its Mitsubishi Ki-30 rival was in the choice of an engine.

In spite of this, the pressing need for more aircraft in the Second Sino-Japanese War, which had started at full scale in July 1937, resulted in the Ki-32's entry into production as well, 12 months behind its rival.

During World War II, the Japanese also supplied Ki-32s to the Manchukuo Air Force to replace Manchukuo′s obsolescent Kawasaki Type 88/KDA-2 light bombers.