To meet the requirement for a special-purpose dive bomber for the United States Navy and United States Marine Corps, the US Navy's Bureau of Aeronautics designed a biplane with fixed tailwheel landing gear, designated Bureau Design 77.
The Martin XT5M-1 was powered by a 525 hp (391 kW) Pratt & Whitney R-1690-22 Hornet radial engine, and, following test during 1930, the Navy ordered 12 aircraft from Martin with the designation BM-1.