Following the end of the Cold War in the early 1990s, Belgium experienced a sharp reduction in its military budget. As a result, the decision was made to reduce the F-16A fleet from 116 to 90 aircraft. However, it was also decided that some of the remaining aircraft would be modernized under a recently launched European-American program known as the Mid-Life Update (MLU). This upgrade included new navigation systems, avionics, and an AN/APG-66 (V)2 radar. It also included the integration of modern weapons: the GBU-12 Paveway II and GBU-24 Paveway III laser-guided bombs, as well as the AIM-120 AMRAAM air-to-air missile and the AGM-65 Maverick air-to-ground missile. The upgraded single-seat variant of the fighter was designated the F-16AM. The first production F-16AMs were delivered in 1996. Belgium modernized approximately 70 aircraft in total, and about 40 remain in service today. The rest were transferred to Jordan or Ukraine at various times, or were lost in accidents.

The Belgian F-16AM was introduced in Update 2.37 "Seek & Destroy", as a part of the French aircraft tree. Arguably one of the most versatile aircraft in the game, the F-16AM can perform the roles of both a fighter and a ground-attack aircraft thanks to its wide range of weaponry. For air combat, it features deadly ARH AIM-120A AMRAAM missiles and low-smoke IR AIM-9M Sidewinders with IRCCM. Its excellent flight characteristics contribute to its success in close-range combat. For ground engagements, it has dumb bombs, unguided rockets, and a range of precision-guided munitions. These include the AGM-65D/G Maverick with various warheads, the GBU-12/24 Paveway guided bomb, and the LANTIRN pod with a high-resolution thermal imager for conveniently guiding these "gifts" onto the target.