It was designed by Edward Wegelius, Martti Vainio and Torsti Verkkola who worked at Valtion lentokonetehdas.

The decision to start developing a new fighter for the Finnish Air Force was based on experience gained before the Winter War: in the "arms race" leading up to a war, smaller nations can have difficulty purchasing top-of-the-line fighters without a significant political cost.

The Finnish Air Force requested preliminary proposals for a domestic fighter from State Aircraft Factory (Valtion Lentokonetehdas) in early 1939, before the Winter War.

After that, The Ministry of Defence ordered the fighter design from State Aircraft Factory in June 1939.

Edward Wegelius was appointed head of the design department of the State Aircraft Factory when Ylinen later moved on to the Helsinki University of Technology in August 1940.

The planned Bristol Taurus III engine was not available due to war, so a Pratt & Whitney R-1830 (civil Twin Wasp) was chosen.

The Myrsky proved fast and manoeuvrable enough to dogfight the contemporary Soviet aircraft; it was the second fastest Finnish Air Force airplane after the Messerschmitt Bf 109G.

Pilots liked the plane as it had good cockpit ergonomics and decent flight and ground handling properties.

Its main drawback was the construction method: the substitute materials simply did not stand up to the harsh Finnish weather.