The Mk 54 was created by combining the homing portion of the Mk 50 and the warhead and propulsion sections of the Mk 46, improved for better performance in shallow water, and with the addition of commercial off-the-shelf (COTS) technology to further reduce costs. It shares much of the software and computer hardware of the Mk 48 ADCAP heavy torpedo, based around a custom PowerPC 603e chip.