Development of the Tucano started in May 1984 after an agreement between Embraer and Short Brothers to meet a requirement to replace the BAC Jet Provost as a basic trainer with the Royal Air Force. The Royal Air Force issued Air Staff Target 412 to define the requirement for a high-performance turboprop trainer. A short-list of designs competed for the contract; the other types considered were the Pilatus PC-9, NDN-1T Turbo-Firecracker and Australian Aircraft Consortium (AAC) A.20 Wamira II.
In 1984 Embraer sent Shorts the seventh EMB-312 airframe off the production line for modifications in order to meet AST-412 requirements. The type was displayed in September 1984 at the Farnborough Airshow featuring an uprated PT6A-25C2 engine and a ventral air-brake to meet required stall speed of 60kt. However, tests undertaken at Boscombe Down later on that year indicated the need to re-engine the aircraft (to meet the RAF requirement for time to height) and Garrett TPE331 was chosen.