Ordered by the Ministry of Defence, it was specifically designed for the upcoming Challenge 1934 International Touring Aircraft Contest.

The plane was an all-metal cantilever low-wing monoplane with a fixed landing gear and a closed canopy.

Because of unreliable engines and quite big fuel consumption resulting from their high power output, most PZL.26s were not used in Polish sports aviation much after the Challenge.

In 1939 Jerzy Dąbrowski made a preliminary design of a fast fighter plane PZL.55, being a far development of the PZL.26's construction, powered by Hispano-Suiza 1100 hp engine, but it was not realized due to World War II.

Cab had three seats in tandem, under a common multi-part canopy, with double controls for the first two crewmen.

Fixed landing gear with a rear skid, main wheels in massive aerodynamical covers.