In 1930, Mitsubishi developed two designs to meet a Japanese Army requirement for a short-range reconnaissance aircraft to supplement the larger, long-range Kawasaki Type 88, the 2MR7, a biplane based on its earlier 2MR reconnaissance aircraft and B2M torpedo bomber developed for the Imperial Japanese Navy, and the 2MR8, a high-wing parasol monoplane.
The first of four prototypes flew on 28 March 1931, powered by a 239 kW (320 hp) Mitsubishi A2 radial engine. Successive prototypes were modified with more powerful engines, reduced wing area and a shorter fuselage until the fourth prototype was accepted by the Japanese Army, and ordered into service as the Type 92 Reconnaissance Aircraft.
The production Type 92 had fixed wide-track divided landing gear, and was powered by a 354 kW (450 hp) Mitsubishi Type 92 radial engine. It carried a crew of two in open cockpits, with an armament of two synchronised, forward-firing 7.7 mm (.303 in) machine guns and one or two flexibly-mounted guns on the observer's cockpit. Production completed in 1934 after a total of 230 aircraft were built.
To meet the requirements of the Japanese Ministry of Railways for a survey aircraft, Mitsubishi developed a civilian version of the Type 92, the Hato survey aircraft. A single aircraft was ordered in 1935, together with a Fokker Super Universal built by Nakajima. Powered by a 298 kW (400 hp) Mitsubishi A5 engine, it differed from the military version in having a glazed canopy over the rear cockpit (which accommodated a crew of two), an open forward pilot's cockpit, and spat-type main wheel fairings. It was delivered in March 1936 and registered J-AARA.
The Type 92 saw active service in Manchuria with the air battalions (later expanded to air wings) of the Kwantung Army Air Corps between 1933 and 1936. The Mitsubishi Type 92 was also used by the Chinese Air Force in the early stages of the Second Sino-Japanese War.