This light tank originated in Czechoslovakia in the early 1930s. After German authorities took over in 1939, the improved model was called panzerkampfwagen 38(t) indicating the country of origin "tscheche" or Czechoslovakia in German. Equipped with a 37mm cannon and two 7.92mm machine guns, the 38(t) saw service in Poland, France, Yugoslavia, Greece and Russia during 1940-41. At the time, they made up as much as 25% of the German tank forces. Although quickly replaced by heavier tanks, the chassis was later adapted to self-propelled guns, anti-tank weapons, artillery tractors and other specialized armored vehicles, with some remaining in front-line service until 1944 as artillery observation vehicles.
 
The earliest models built under German control had thicker armor than the original Czech design, increasing overall weight from eight to 11 tons. Most were fitted with the Czech Skoda 37.2mm cannon, but some did receive a German-built 37mm gun. 150 were produced.