After the dissolution of the USSR, the Russian Federation cancelled many future aircraft projects meant to replace the existing inventory, such as the Su-37 and MiG-1.44. Due to the tight budget of the post-Soviet era, it was instead decided to upgrade existing aircraft with modern avionics and weaponry. The first of such upgrades was the Su-27SM (NATO reporting name: Flanker-B). The Su-27SM upgrade focused primarily on avionics, fire control, and flight control systems, with the primary upgrades being a new cockpit overhaul featuring HOTAS controls, multiple new multi-function displays replacing the old analog instruments, an entirely new navigation system using GLONASS (the Russian equivalent to GPS), a new fire-control system with an improved radar and electro-optical sighting system (IRST) allowing compatibility with new missiles such as the R-77 and slaving of weaponry such as the Kh-29 to the air-to-ground modes in the radar, and a far more advanced mission computer. Finally, the defensive suite was also overhauled, with the SPO-15 Beryoza being replaced by the modern Pastel radar warning receiver, and the famous Sorbtsiya wingtip jamming pods were also replaced by the more modern Khibiny system. The first Su-27SMs began trials in the late '90s and started entering service shortly after the turn of the century. The Su-27SM standard would receive various upgrades throughout its life, culminating in the modern day Su-27SM3 variant.

Introduced in Update "Seek & Destroy", the Su-27SM will be very familiar and is in most aspects similar to the previous Su-27 in the tech tree. The primary differences are its armament, as the Su-27SM has access to the new R-77 Active Radar Homing missile to increase its lethality in air combat. More importantly, the Su-27SM offers guided ordnance options over its predecessor, in the forms of the KAB-500 TV guided bombs, the Kh-29TD medium range TV guided missiles, and the unique KAB-1500Kr, one of the largest TV guided weapons in-game. The Su-27SM unfortunately does not fix the main shortcomings of its predecessor against its contemporaries, such as the insufficiently low amount of countermeasures, the sub-par radar system, or the unstable flight dynamics. All in all, the Su-27SM serves as a step up from its predecessor, and in the right hands, can prove to be a dangerous aircraft in both air-to-air and air-to-ground engagements.