Immediately after production of the Merkava Mk.2 began in 1983, Israeli engineers began working on the new Mk.3 version of the MBT. The Merkava Mk.3 introduced significant improvements over preceding variants in almost all aspects. Primarily however, the focus of the upgrades was centered around improving protection - by adding additional armour to the hull - as well as mounting the newly developed IMI MG251 120 mm smoothbore cannon, purpose-built for the new modification of the Merkava, in order to increase firepower.

Production of the Merkava Mk.3 began in the late 1980s, with the first vehicles reaching troops in December 1989. The Merkava Mk.3 remained in production until 2003 by which time around 650 vehicles were built. Thus, the Merkava Mk.3 belongs to the spearhead of Israel's armoured units in the present day
-WT Dovbleg