The XM7 features a free-floating reinforced M-LOK handguard for direct accessory attachment to slotted hole mounting points.
[9] In January 2019, the United States Army began the Next Generation Squad Weapon Program to find replacements for the M4 carbine and M249 light machine gun.
[15] In January 2023, the Army announced it would change the name of the rifle from XM5 to XM7 to avoid a trademark conflict with Colt's M5 carbine.
The contract has the option to build additional weapons should the U.S. Marine Corps and U.S. Special Operations Command choose to be included.
[17] Operational testing of the XM7 rifle, XM250 light machine gun, and XM157 Fire Control Optic was scheduled to begin in 2024 (at which point it would become the M7)[16] but widespread distribution was not assured.