The development of the submachine gun was initiated by the Military Technical and Airforce Institute (VTLU) in March 1935. Designer Frantisek Myska (1899–1983) developed several alternatives in Ceska zbrojovka in Strakonice but it was not until early December 1937 that the factory, after a series of tests, presented a new weapon to the representatives of the VTLU, which differed in appearance and design from the later more well-known design.
VTLU changed its requirements only in the spring of 1938, emphasizing the maximum possible fire rate and high magazine capacity, which reflected the planned use of the weapon in light fortifications built by the Directorate of Fortification Works (ROP). Within a month, Frantisek Myska designed a completely new weapon with the possibility of deploying a box magazine for 24 rounds or a drum magazine with a capacity of 96 rounds. After a series of tests, on 30 August 1938, the Armaments Commission proposed introducing the weapon into the armaments under the designation “Model 38 machine gun”, but serial production was not launched because of the occupation. After 15 March 1939, only 15 completed samples remained in the factory out of the original 20 pieces in development.