Developed from the Douglas XSB2D-1 Destroyer as a torpedo bomber for the US Navy, the Douglas BTD Destroyer first flew on 5 March 1944. It differed from the XSB2D-1 with the removal of the turrets and second crewman, the addition of more fuel and armor and wing racks that could carry two torpedoes.
The additional weight from the modifications severely affected performance and the contract was terminated at the end of the war, with only 26 production aircraft being completed.
Two XBTD-2 prototypes were built in an attempt to increase performance with the additional Westinghouse 19B engines in rear fuselage giving 1,500 lbf (6.7 kN) thrust. This mixed propulsion with the additional turbojet did not sufficiently improve performance to warrant production.