In 1936, the U.S. Navy contracted with the Ranger Division of the Fairchild Engine and Airplane Corporation for four XV-770-4 engines with a take-off rating of 373 kW (500 hp). Because of its low projected frontal area and inverted installation, permitting excellent pilot visibility, the design was considered attractive for installation in cruiser- and battleship-based scout observation aircraft, and scheduled for installation in the Vought XSO2U-1 and Curtiss XSO3C-1 aircraft. The -4 model, because of certain structural deficiencies and unsatisfactory torsional vibration characteristics, proved unsatisfactory for service use. Design deficiencies required extensive changes resulting in the -6 model, contracted for production in 1940 for installation in SO3C-1 aircraft.

In 1942, the Navy initiated further development to improve the power and altitude performance. Improvements including structural refinement and improved supercharger resulted in the V-770-8. This engine model was approved for production for installation in later series Curtiss SO3C airplanes and XOSE-1 aircraft.