The Wiesel was developed for the German Army to meet a requirement for an air-transportable light armored vehicle for use by its airborne troops, as the infantry of the German Bundeswehr, especially airborne infantry, was considered unprepared to successfully fight enemy main battle tanks (MBT) in the 1970s. The requirements were that the vehicle should fit in common NATO transport planes and could eventually be air-dropped. It should be able to fight infantry as well as enemy tanks or aircraft. Porsche produced some prototypes of the future fighting vehicle for the Bundeswehr in 1975, but the Bundeswehr stopped the project in 1978 due to lack of funds. Nevertheless Porsche continued development, because of interest from other countries.

The Wiesel was finally introduced as new weapon system for the Bundeswehr with deliveries beginning in the late 1980s. The vehicle was named Wiesel ("weasel") because of its small size and agility, which make it very difficult to detect on the battlefield.

Depending on the exact configuration, the length is about 3.55 meters, the height 1.82 meters, and the width 1.82 meters. At only 2.75 metric tons, it weighs less than the armored variant of the U.S. Humvee military light truck. The engine is a 64 kW Audi 2.1-litre diesel engine giving a top speed of 70 km/h (45 mph). The Wiesel can ford 0.5 m deep and cross a 1.2 m trench. It is manufactured by Rheinmetall AG.

The chassis is made of stell armour and can resist the common 5.56mm and 7.72mm small arms ammunition. Air dropping the vehicle from a plane with parachutes was tested, but was not successful; four test-vehicles were destroyed. Nevertheless, the Wiesel can easily be flown in by transport helicopters, a single CH-53 Sea Stallion helicopter can fly in two at once, and common transport planes can carry four or more Wiesel vehicles.

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