In response to a 1945 Navy contract for an improved version of the FH-l "Phantom", McDonnell Aircraft Corporation began delivery in 1949 of the first of 894 F2H "Banshees" over a production run that ended in 1953. The F2H retained the same straight-wing design as its predecessor but was larger, heavier and incorporated more powerful engines. Prototypes reached a top speed of 585 mph and an absolute ceiling of 50,000 feet. New equipment included nose cone radar, auto-pilot and improved pressurization and ejection seat.(The first emergency ejection by a naval aviator was from an F2H at about 500 knots).

The "Banshee-2" (F2H-2) performed a major role in the Korean War as a carrier based fighter-bomber and also as a photo-reconnaissance airplane. In the fighter role, the "Banshee" was more maneuverable, faster, and had greater fire-power than the Grumman F9F-5 also in use at the time. They flew at one time as fighter escorts for Air Force B-29 "Superfortresses" but did not encounter any North Korean fighters during their service throughout the war. Later variants (F2H-3/4) were deployed as night and all-weather fighter-bombers in 1953.

The "Banshee" series of airplanes were capable of cruising on one engine at altitude, were very stable, and were relatively good carrier airplanes. They also had two adverse traits in common - the tail section was particularly vulnerable to any stress loads beyond the manufacturer's g-load limits and, the landing gears were very fragile and precluded carrier arrested landings above recommended landing weights.This meant that once a pilot dumped excess fuel to get down to maximum permissible weight, he was limited to about three passes at the deck. Not a pleasant situation under adverse weather and pitching deck conditions.