The successful production of four four-pound cannons and two short howitzers on 27 October 1853 is date of foundation of Zastava Arms in Kragujevac.

Between 1856 and 1860, the facilities in Kragujevac received many upgrades to its manufacturing system, eventually allowing the plant to produce weapons with full parts interchangeability.

[4] In 1924 and 1925, the Ministry of the Interior signed contracts with FN Herstal, Belgium which allowed the production of M24 series bolt-action rifles chambered in 7.92×57mm Mauser.

In July 1936, the factory received a license from the Czechoslovakian Zbrojovka Brno to produce the light machinegun ZB vz.

When Kragujevac was liberated on 21 October 1944, the weapons factory was repaired to working order within months and production began shortly after, with the 9 mm M 1944 B2 submachine gun developed the same year.

During the Yugoslav Wars of 1991 to 1995, the United Nations placed economic sanctions on the import and export of weapons from Yugoslavia.

In 2005, a memorandum of understanding was signed with Remington Arms to export hunting and sporting guns to the United States, Canada and Mexico.

[5] However, the realization of that decision has been postponed indefinitely, making Zastava Arms the most indebted defense industry company in Serbia.

[10] The deals made in 2020 were worth 95 million dollars, with buyers mostly from Asia, Africa and the United States.