The Milan began development in 1968 after the Swiss Air Force expressed interest in acquiring a modified Mirage III with increased manoeuvrability and specialised in tactical support. Thus, the Milan was built, using the Mirage III as a basis but incorporating the weapon systems of the Jaguar. The most significant improvement came in the form of retractable "whiskers" located on the nose of the aircraft, which reduced takeoff distance and provided greater lift. The Milan took its maiden flight on May 29, 1970. However, in 1972, the Swiss Air Force decided to upgrade its Hunters and instead purchase the Northrop F-5.

Introduced in Update "Danger Zone", the Milan is a capable multirole fighter for its BR, thanks mainly to its sizable payload for ground attacks and powerful engine, as well as access to a ballistics computer for bombs and rockets, which is why it is commonly used as a strike aircraft rather than a fighter in-game. The Milan does suffer from a few drawbacks compared to the Mirage IIIC/E or Mirage 5F, lacking access to the Matra Magic 1 or R530 missile, as well as countermeasures. For air-to-air combat, it is more important than ever to stay fast and launch AIM-9B Sidewinders only at unsuspecting enemies from distances below 2 km, as the missile does not have a very long range.

The Milan was removed from the Gaijin store at the end of the 2023 May Sale. It was briefly made available for purchase with Golden Eagles for the 2023 and 2024 "Bastille Day" mini-events.