The Mark 54 was co-developed by Raytheon Integrated Defense Systems and the U.S. Navy under the U.S. Navy's Lightweight Hybrid Torpedo program in response to perceived problems with the extant Mark 50 and Mark 46 torpedoes. The Mk 50, having been developed to counter very high performance nuclear submarines such as the Soviet Alfa class, was seen as too expensive to use against relatively slow conventional submarines. The older Mk 46, designed for open-ocean use, performed poorly in the littoral areas, where the Navy envisioned itself likely to operate in the future.