The idea of developing a new torpedo boat first emerged among British designers in the late 1930s. They recognized the potential of German boats with powerful armaments and high speeds at relatively low costs. Following the outbreak of World War II, development accelerated with Noel Maclean's proposal. Maclean was a former cavalryman and member of the Dover Patrol from 1916 to 1918. In 1939, he founded Fairmile Marine and submitted a design for a wooden boat to the Admiralty. The boat could be built in piano and furniture workshops. Within a year, this led to the creation of the Fairmile A, followed by the Fairmile B and Fairmile C.

However, by the end of 1940, it became apparent that the new British boats were vulnerable compared to the German ones. They were slower and had more expensive but weaker armaments. Additionally, their torpedoes were ineffective against small, mobile targets. To remedy this, the Admiralty recalled Maclean's longer designs, which had been rejected for minor reasons. By March 1941, the designs had been modified to include a stern similar to that of a destroyer. Almost a year later, the first series of the new Fairmile D boats was ready. The first boat of the fourth series (697–800), MTB 697, was launched in July 1943. This series differed from previous boats in that it was equipped with four 18-inch torpedoes and special guides for them in the bow. Additionally, the boats continued to be modernized during their service. For instance, beginning in 1944, some were equipped with 6-pounder guns. MTB 697 served in the Royal Navy until April 17, 1945, when it struck a mine in the Adriatic Sea and sank.

The Fairmile D (697) was introduced in Update 1.83 "Masters of the Sea". Compared to its predecessor, the boat's armament has undergone significant changes. The 57mm gun is now located in both the bow and stern. The reduction in torpedo caliber to 450 mm is offset by an increased number of torpedoes on board. The boat still has powerful and numerous artillery weapons; however, it does not stand out in terms of survivability due to its large, wooden hull. This makes it best suited for quick and sudden attacks on enemy torpedo and gun boats.