The RakJPz 2 (HOT) was a further development of the previous RaketenJagdpanzer 2, mounting the HOT ATGM which used a far superior Semi-Active guidance system (SACLOS) compared to the SS.11's Manual system (MCLOS). The HOT-upgraded RakJPz 2s served until 2005 upgraded up to Jaguar 1A3 standard, while the TOW-equipped Jaguar 2 was retired in 1993, also an upgrade from the RakJPz 2s. The RaketenJagdpanzers operated under a doctrinal plan to engage Soviet armour at ranges of 1.5 to 3 kilometres using their missile armament, which was generally assessed to have higher accuracy than contemporary tank cannons at those ranges on initial deployment. The RakJPz 2 (HOT) and later Jaguar 1/1A3s could be fully NBC protected, as they used an autoloading system which replenished the TOW launchers without human interference.

The RakJPz 2 (HOT) was introduced in Update 1.63 "Desert Hunters". Compared to its predecessor, this variant has an upgraded missile known as the HOT (High Subsonic Optical Remote-Guided, Tube-Launched) that is aimed by simply sticking the gun's sight onto the desired target. Due to its relatively low profile, the Raketenjagdpanzer 2 HOT is able to completely conceal itself behind hills and rocks and fire over them, should the terrain allow it. The ATGM itself is rather stiff, but is generally adequate in mid to long range engagements. The vehicle, however, notably trades away gun depression and launcher swivel range for the HOT ATGM, which limits the vehicle noticeably more when compared to its predecessor, the RakJPz 2.