Further development of the challenger 1 by vickers defence systems resulted in the challenger 2 mbt, of which 386 have been ordered by the british army, with deliveries running from 1994 through to 2,000. Oman has ordered 18 challenger 2 mbts. With the introduction of challenger 2, all remaining chieftain and challenger 1 mbts will be phased out of service with the british army. Although similar in appearance to challenger 1, the challenger 2 mbt has many improvements including a brand new turret armed with the latest 120mm l30 rifled tank gun firing a new apfsds-t (armour piercing fin discarding sabot tracer) projectile with a depleted uranium penetrator

The new computerized fire control system, all electric gun control and stabilizing system, and stabilized sights for the commander and gunner give a high degree of first round hit probability under both day and night conditions. Standard equipment includes a thermal camera over the manlet of the 120mm gun which provides a picture for gunner and commander, as well as an nbc (nuclear, biological, chemical) system, mounting points for additional fuel drums at the rear, and mounting points for a combat dozer blade at the front of the hull

The kit consists of over 190 parts with newly tooled parts in accurate detail