Following the introduction of smokeless powder in the Lebel rifle at the end of the century, the Steyr factory worked on new Mannlicher designs, using more effective modern cartridges.

[2] While the more famous Mannlicher M1895 used the less common straight-pull bolt, the Mannlicher–Schönauer had a conventional turn-bolt, derived from the Gewehr 88 (and reminiscent of other typical military bolt-action rifles of the time).

This contract was part of a major modernisation plan as until then the Greeks were using single-shot, black powder Gras rifles made by the Steyr factory and this may explain how Mannlicher won the order.

Following the Asia Minor Campaign (1919–22), the Greeks were in urgent need of more weapons and tried to get Mannlicher–Schönauer rifles from every possible source in order to replace war losses (almost 50% were captured by the Turks, leaving slightly over 104,000[4] to 108,000[5] M1903 and M1903/14s).

The Portuguese military also favoured the Mannlicher–Schönauer, but it was deemed too expensive and the locally designed Mauser-Vergueiro, which paired the Mannlicher–Schönauer bolt to a double-stack box fixed magazine copied from the Mauser 98, was adopted instead and other countries made limited use of them too.

At the outbreak of World War I, a significant number of 6.5 mm Mannlicher–Schönauer rifles manufactured for Greece under the 1914 contract were sequestered and due to urgent needs, used by the Austrian Army.

The weapon was chosen instead of the Greek-designed "Philippidis gun" ('Οπλον Φιλιππίδου), itself based on an earlier model of the same Austrian manufacturer, after intense lobbying against the Greek design in 1905.

[6] The Philippidis gun was officially approved for production in 1925, but again, the Mannlicher–Schönauer was produced (by Breda in Italy), due to (reportedly) late submission of the Greek designs to the Italian manufacturer and/or cost factors.

In Great Britain, the 6.5×54 cartridge fell into disfavour with deer-stalkers after the passage of the 1963 Deer Act as the bullet's muzzle energy failed to reach the legally required minimum value.

Production was interrupted during the Second World War but re-commenced in 1950 with the MS-1950 model, which was produced in full and half stock and chambered in popular cartridges such as the .270 Winchester and .30-06 Springfield.

WDM "Karamojo" Bell, a prominent elephant (ivory) hunter in Africa in the early 20th century, also used the rifle in its original 6.5×54 chambering with considerable success.

The ability of the diminutive 6.5×54 cartridge to take the largest and most dangerous of the big game species, such as African elephant and Cape Buffalo, was due in the main to the high sectional density of the 6.5mm projectiles used in the rifle, although precise placing of the shot was imperative.

Because the original factory loads for the 6.5×54 projectiles were long and heavy (10 g or 160 gr) relative to their diameter, they proved capable (in solid form) of very deep penetration through muscle and bone.