According to Jane's, the helicopter was known with the tentative name 'X-5' in the Institute of Industrial Research and Development of the Islamic Revolutionary Guard Corps, where it was developed during the 1990s.[1] The aircraft made its first flight reportedly in 1997, and the first instance was delivered on 16 September 1999 (with the tail number 71-823).[1] The public international debut of Shahed 274 was held on 30 December 2000, in Tehran.[1] By the end of 2001, it is known that two more helicopters with tail number 74-001 and 74-002 were in service.[1] From October to November 2002, the helicopters were put on display at Iran Kish Air Show.[1] By the end of 2004, it was reported that 20 or 30 were planned, but no evidence of were available as of 2006, and status of the project was also unknown.[1]