Initially a state-funded product, it was later produced by Zastava Arms and saw use in a number of conflicts following the breakup of former Yugoslavia.

The M56 is based on the MP 40 submachine gun captured from Nazi Germany, easily distinguished from the MP 40 by its increased length and curved magazine.

[3] Inexpensive and simple to produce and maintain, the M56 also proved to be quite effective at range over its German counterpart due to its 7.62×25mm cartridge having significantly higher velocity than the 9×19mm round used by the MP 40.

Internally the M56 lacks the telescoping recoil spring found in the MP 40.

Disassembly also differed with the gun being taken apart via a rear end cap, separating the lower and upper receivers while the MP 40 this was accomplished by a button on the lower receiver located behind the magazine well.