MontaVista is based in Santa Clara, California and was founded in 1999 by James "Jim" Ready (formerly at Mentor Graphics and creator of Versatile Real-Time Executive (VRTX)) and others.

On November 10, 2009 Cavium Networks announced that it had signed a definitive agreement to purchase MontaVista for $50 million.

The software includes a Linux kernel and toolchain aimed at a specific hardware configuration, collectively called a Linux Support Package (LSP), and other integrated tools including the Eclipse-based DevRocket integrated development environment (IDE).

Engineers can quickly jumpstart their ARM and x86 development with a full embedded Linux distribution that is easily customizable.

Evaluation Assurance Level 4+ (EAL4+) is commonly used to secure connectivity in critical environments, such as fire and police departments, or aviation and industry control systems.

Mobilinux's key features include dynamic power management, real-time performance, fast booting, and small memory footprint.

[11] The core changes to make MontaVista Linux into a real-time operating system were made by Nigel Gamble and later updated by Robert Love.

[13] MontaVista has also spun off independent open source projects based on several of its features, including dynamic power management, high resolution POSIX timers, the pramfs file system,[14] and the openais implementation of the Service Availability Forum's (SA Forum) Application Interface Specification.

[15] Other versions of MontaVista Linux are used in devices made by a number of partners, including Sony Bravia TVs, NEC routers, and others, especially in Japan.