In 1962, the Norwegian Defence Research Establishment (Forsvarets forskningsinstitutt – FFI) and Kongsberg Defence Systems of Norway initiated development of the Penguin missile.

The Penguin missile was designed to equip patrol vessels and missile boats for near-shore anti‑ship operations. Given Norway’s rugged coastline and dense network of fjords and islands—environments that generate significant radar clutter—the Penguin missile adopted infrared imaging guidance, making it the first Western anti‑ship missile to employ infrared guidance. Infrared guidance is a passive targeting method; combined with the Penguin’s relatively small size, this design significantly increased the challenges faced by enemy ships in detecting, warning of, and defending against incoming missiles. Moreover, the cold Nordic climate often results in pronounced temperature contrasts between targets and their surroundings, further enhancing the advantages of infrared guidance. The concept of the Penguin missile captured the interest of the United States, which provided financial support for its development. From 1963 to 1965, the Penguin underwent rigorous technical validation and testing. Around this time, West Germany also began investing in the project to acquire its technology. By 1972, after completing operational evaluations, the Penguin missile entered service.