Also known as HD 44179, the nebula was discovered in 1973 during a rocket flight associated with the AFCRL Infrared Sky Survey called Hi Star.

High-resolution images of it in visible and near infrared light reveal a highly symmetric, compact bipolar nebula with X-shaped spikes which imply anisotropic dispersion of the circumstellar material.

[4][5][6] The presence of such carbon-bearing macromolecules in the X-shaped nebular component, while the equatorial regions are known to contain silicate-rich dust grains and O-bearing molecules,[7] was interpreted as due to a change of the O/C abundance ratio of the primary star during its late evolution.

Theorists, like Noam Soker, Vincent Icke [nl], Adam Frank, and others, have shown that this axial symmetry can appear as a result of shocks due to interaction of different phases of the stellar winds (characteristic of the late stellar evolution), but its origin is still debated.

[11] On the other hand, the X-like shape and the low velocity of the outflowing gas in the Red Rectangle are peculiar, probably because its origin (associated to a stable, extended disk) is different than for most protoplanetary nebulae.