A US Navy requirement for a turbojet-powered carrier-based night fighter resulted in Douglas receiving a contract for three prototype aircraft in this category under the designation Douglas XF3D-1.

The type emerged as a cantilever mid-wing monoplane of all-metal construction, the wings incorporating hydraulic folding for carrier stowage. The circular-section fuselage mounted hydraulically actuated speed-brakes, provided side-by-side pressurised accommodation for the pilot and radar operator, and carried at the rear a tail unit very similar to that of the D-558-1 Skystreak. An unusual feature was a crew escape tunnel, extending from the rear of the cabin to the underside of the fuselage. Landing gear was of retractable tricycle-type, and the powerplant of the prototypes comprised two 1361kg thrust Westinghouse J34-WE-24 turbojets, mounted on the lower edges of the forward fuselage, beneath the wing roots.

The first prototype made its maiden flight on 23 March 1948, but while company testing was still in progress an initial contract for the construction of 28 F3D-1 Skyknight production aircraft was received. The first of these was flown on 13 February 1950 and the type began to enter service in early 1951. The F3D-1 differed from the prototypes by having improved avionics and equipment and, as delivered initially, had 1361kg thrust J34-WE-32 turbojets. These engines were uprated subsequently to 1474kg thrust, becoming redesignated J34-WE-34.

Before delivery of the first F3D-1, Douglas had received a contract for production of an improved F3D-2, which was to be the major and ultimate production version, with a total of 237 built. It was intended that the F3D-2 should be powered by 2087kg thrust J46-WE-3 turbojets, but development of this engine was abandoned and, instead, they were all powered by J34-WE-36s. Improvements included the provision of an autopilot and updated systems and equipment. The first of these F3D-2s was flown on 14 February 1951 and all had been delivered just over a year later. The Skynight saw extensive use in Korea, this all-weather fighter accounting for the majority of all victories scored by the US Navy and US Marine Corps.

F3D-1s and F3D-2s were redesignated F-10A and F-1OB respectively with introduction of the new US tri-service designation system in September 1962. Some Skyknights had been retired by 1965, but many ECM versions were operating in Vietnam until 1969.