The ship, named for Archduchess Stephanie, Crown Princess of Austria, was laid down in November 1884, was launched in April 1887 and completed in July 1889.

Surrounded by potentially hostile countries powers on land, the Austro-Hungarian Empire was more concerned with these threats, and so naval development was not prioritized.

[1] Admiral Friedrich von Pöck argued for several years to improve the strength of the Austro-Hungarian fleet, finally winning authorization to build the center battery ship Tegetthoff in 1875.

Pöck's successor, Maximilian Daublebsky von Sterneck, ultimately had to resort to budgetary sleight of hand, appropriating funds that had been allocated to modernize the ironclad Erzherzog Ferdinand Max to build an entirely new vessel.

The ships were broadly similar, though Kronprinzessin Erzherzogin Stephanie was significantly smaller and carried one less main battery gun compared to the other vessel.

Chronically starved of funding, the navy was forced to accept significant compromises in the size—and therefore capabilities—of Kronprinz Erzherzog Rudolf and Kronprinzessin Erzherzogin Stephanie, particularly compared to the far larger and more heavily armed Amiral Duperré that inspired their design.

Scheltema de Heere severely criticized the decision to build two ships of markedly different size and power at the same time, stating "Either you need three guns or you can do with two, but one unit larger than the other is nonsense.

Her hull was constructed with transverse and longitudinal steel frames and was extensively subdivided into watertight compartments to improve the ship's resistance to flooding.

[5] Kronprinzessin Erzherzogin Stephanie had a short forecastle deck and a raised sterncastle, and a relatively small superstructure that consisted of a conning tower with a bridge atop it.

During her initial trials, which were carried out at a displacement of 5,160 long tons (5,240 t), the ship reached a top speed of 15.93 knots (29.50 km/h; 18.33 mph) from 8,038 ihp (5,994 kW).

Kronprinzessin Erzherzogin Stephanie, the ironclad Kronprinz Erzherzog Rudolf, and the protected cruiser Kaiser Franz Joseph I were sent to Germany under the command of Rear Admiral Johann von Hinke.

While en route, the squadron made visits in Gibraltar and Britain; during the latter stop, the ships took part in the Cowes Regatta, where they were reviewed by Queen Victoria.

[11] During the 1893 fleet maneuvers, Kronprinzessin Erzherzogin Stephanie was mobilized to train alongside the ironclads Kronprinz Erzherzog Rudolf, Prinz Eugen, Kaiser Max, and Don Juan d'Austria, among other vessels.

[13] The International Squadron operated off Crete until December 1898, but Austria-Hungary, displeased with the decision to create an autonomous Cretan State under the suzerainty of the Ottoman Empire, withdrew its ships in March 1898.