A heavy tank destroyer design based on the 88 mm Pak 43 gun and the Panther tank chassis was ordered in late 1942 as design SdKfz 173. Production started in early 1944; at the same time Hitler specified the Jagdpanther ("hunting panther") name.

To accommodate the gun, the sides of the Panther tank were extended up to provide a roomy interior, while maintaining a very low profile. Both the Panther Ausf. G and Jagdpanther had side armor of increased elevation to enhance this effect even further and to harmonize production.

It was armed with an anti-tank version of the same long-barreled 88 mm gun as the Tiger II and a 7.92 mm MG-34 machine gun in the front glacis plate for local defence. The Jagdpanther had a good power-to-weight ratio and a powerful main gun, enabling it to destroy any type of Allied tank. The Jagdpanther's low profile meant that it was easily camouflaged. Because it was based on the existing Panther chassis, the vehicle did not suffer too many mechanical problems. It was manned by a crew of 5, a driver, radio-operator, commander, gunner, and a loader.

Two variants can be distinguished, one with a welded steel band around the main gun mantlet and the other with a bolted-on band. The versions with the bolted-on ring were equipped with Pak 43/4 gun. Early Jagdpanthers had a monobloc gun barrel and two vision openings for the driver, whereas late versions had only one.