The Magach 5 was, at its core, an upgraded American M48A5. The Magach 5 was introduced in Israel after the Yom Kippur War of 1973. After this war, the IDF had to replace several examples of their Magach and Sho't tanks that were lost, especially due to anti-tank weapons like the RPG-2, RPG-7, and Malyutka ATGMs. To address this issue, the IDF adopted the American M48A5 and designated it Magach 5. This version of the tank was also an upgrade of the M48A3, incorporating the 105 mm rifled gun over the 90 mm gun in earlier M48 models. This upgrade was based in part in Israeli experiences with Magach tanks in 1967 and 1973.

It was introduced in Update "Drone Age". The Magach 5 plays like most M48 tanks. However, compared to previous models, the Magach 5 incorporates a more capable 105 mm gun with increased firepower. The upgrade however does not include a stabilizer, which can be seen on later Magachs with the Sharir cannon. However, the tank is very much protected against all sorts of HEAT and HE projectiles, as well as early ATGMs like the MILAN that lack tandem warheads. This is because the Magach 5 incorporates Blazer ERA, this is a very early ERA, even weaker than Kontakt-1, so it is not enough to stop APDS and APFSDS projectiles, or even high calibre HEAT projectiles from 120 and 125 mm guns.