[2] In 1992, Aermacchi signed a cooperation agreement with Yakovlev to provide financial and technical support for the new trainer that the firm had been developing since 1991 for the Russian Air Force in competition with the Mikoyan MiG-AT.

[8] In July 2000, Aermacchi selected the Honeywell F124 turbofan engine to power the type in place of the originally intended Lotarev DV-2S powerplant.

[14] On 10 April 2008, the first Low Rate Initial Production (LRIP-00) aircraft, produced in the final configuration (new landing gear and air brake, more composite parts), was rolled out.

[15] On 18 December 2008, Aermacchi announced that the M-346 had attained a maximum speed of Mach 1.15 (1,255 km/h, 678 knots, 780 mph), claiming the occasion to be the first in which an all-Italian built aircraft had broken the sound barrier in 50 years.

[16] In May 2008, Boeing signed a Memorandum of Understanding to cooperate on the marketing, sales, training and support of two Aermacchi trainer aircraft, the M-346 and the M-311.

[17] On 20 June 2011, a Military Type Certification was granted to Alenia Aermacchi for the M-346 Master by the General Directorate for Aeronautical Armaments of the Italian Ministry of Defence in Rome.

[18] In the advanced jet trainer role, the original M-346 model is unarmed; however, in November 2015, it was reported that Alenia Aermacchi was close to finalising a combat-capable dual-role variant of the aircraft.

[20][21] In 2015, an armed variant, designated as the M-346 LCA (Light Combat Aircraft), was offered to Poland; this reportedly included a capability of operating the Brimstone air-to-ground missile.

[25][26] In January 2021, Israeli and Greece ministers of defence announced plans to establish a wide-ranging $1.68 billion security agreement that include the procurement of 10 M-346 aircraft and the establishment and operation of a flight school for the Hellenic Air Force by Elbit Systems, including provisions for simulators, training and logistic support.

[28] The flight control system, incorporating a HOTAS design philosophy, is equipped with adjustable angle of attack and g-force limitations; when combined with its wide performance envelope, this allows the M-346 to effectively mimic the flight performance of various fighter aircraft operated by trainee pilots or to progressively increase difficulty levels, thus raising the training's effectiveness.

[25] For post-mission evaluation and analysis purposes, accumulated data, such as video from the optional Helmet Mounted Display, can be extracted and reviewed.

[28] The M-346, in the multirole Fighter Attack variant (M-346FA), is equipped with a multi-mode fire-control radar (Grifo M-346 by Leonardo Electronics)[25] and a total of seven hardpoints, it is capable of carrying external loads up to 3,000 kg while maintaining a high thrust-to-weight ratio; stores management data can be presented upon any of the multifunction displays in the cockpit.

[33] In March 2016, Finmeccanica signed a contract worth over 300 million Euros with the Italian Ministry of Defence for nine M-346, bringing the number of aircraft ordered by Italy to 18.

[36] On 12 September 2024, the Italian Air Force's aerobatic team Frecce Tricolori unveiled the M-346 as its new aircraft to replace the Aermacchi MB-339-A/PAN, alongside a new livery designed by Pininfarina.

[38][39] In a press release by the Singaporean Ministry of Defence on 28 September 2010, ST Aerospace was awarded the contract to acquire twelve M-346 and a ground-based training system on behalf of RSAF.

As stipulated in the contract, ST Aerospace acts as the main contractor in the maintenance of the aircraft after delivery by Alenia Aermacchi while Boeing supplies the training system.

[24] On 16 February 2012, the M-346 was selected by the Israeli Air Force (IAF) in an exchange deal, in which Israel will build a reconnaissance satellite and AWACs systems[43] for Italy in return for the planes.

[46][47] On 19 July 2012, a contract was signed between Alenia Aermacchi and the Israeli Ministry of Defence to supply 30 M-346s, with the first delivery expected in the middle of 2014.

[56] On 19 November 2018, Leonardo's Aircraft Division together with Elbit Systems completed delivery of M-346 Full Mission Simulators (FMS) and Flight Training Devices (FTD) to the Polish Air Force (PLAF).

[62] Alenia Aermacchi submitted the M-346 for the United States Air Force's T-X program to replace the aging Northrop T-38 Talon, rebranding it as the Leonardo DRS T-100 Integrated Training System.

Alenia originally intended to be the prime contractor, anticipating moving the final assembly location from Italy to the United States if the bid succeeded.

In February 2016, it was announced that Raytheon, which would serve as the prime contractor, had teamed up with Leonardo to offer an advanced variant of the M-346 for the T-X program called the T-100.

A final request for proposals in 2010 had set the requirement at 20 trainers, 20 aircraft for combat duties, and the remainder would go toward the creation of an aerobatic team.

"[80] On 11 May 2013, an Alenia-operated M-346 crashed near the village of Piana Crixia, in Val Bormida, between the provinces of Cuneo and Savona, Italy, during a test flight.

In comparison to Ireland's current air combat capability, the M-346FA would be considered by many to be a step up, introducing features such as air-to-air missiles and onboard radar.