
BAE Systems' Advanced Precision Kill Weapon System is compact and fixed-wing. This kit converts a unguided 2.75 inch rocket into a precision guided weapon. The launcher's seeker is semi-active laser, which can be directed towards targets beyond the launcher. The system is capable of hitting targets within 5 meters of its spot. This precision-guided weapon will hit targets with minimal collateral harm.
APKWS is based on the standard Hydra 70 unguided rocket, which has been in service with the United States Marine Corps (USMC) and the United States Air Force (USAF) since the early 1990s. The system can be fired from attack helicopters and light aircraft. This includes the USMC’s AH-1 Cobra attack helicopter, Bell 407GT scout helicoptor, and UH-1Y Vennom utility helicopter. The USMC MQ-8 Fire Scout rotarywing aircraft is also equipped with the guidance system. The guidance kit provides surgical strike capabilities and increases the rocket's range by 30%.

The USMC has completed qualification testing on the APKWS systems, which were also tested in Afghanistan. This includes eight live-warhead hits against AH-1W Super Cobra attack helicopters by the USMC. APKWS were also tested at Eglin AFB Fla on a HawkerBeechcraft AT-6C turboprop lighter attack aircraft. In January 2012, it fired from an aircraft. It fired from an aircraft in January 2012.
The US Navy chose BAE Systems to be the prime contractor in the weapon development phase for APKWS. The contract includes a $45.7 million low rate initial production contract, which will be assumed by the Department of Navy. The Navy will make a production decision within 60 days. The Navy plans to integrate the weapon onto a variety platforms, including the AH64D Apache Longbow attack and rescue helicopter, MQ-8 Fire Scout utility helicopter, UH-1Y Vennom utility helicopter, and MH-60R Seahawk maritime helicopter. The guidance kit is also planned to be integrated onto the Lockheed Martin F-16 platform.
APKWS integration has been a focus of the US Navy's integration efforts. The Air Force is also pursuing integration with the Lockheed Martin F-16 platform, while the US Marine Corps began activities to integrate APKWS to its AV-8B marine patrol aircraft. Australia has also tried APKWS on the EC665 Tiger ARH scout/attack aircraft. Australia will purchase the APKWS system to equip the EC665 Tiger. Australia plans to purchase the APKWS system for its MH-60R Seahawk navy helicopter.

In January 2012, US Navy's Air Test and Evaluation Squadron 9 completed its initial operational test and assessment (IOTE) phase. APKWS was declared functionally effective by NAVAIR's independent agency. The agency also found the system operationally compatible with the Marine Corps AH-1W Super Cobra attack helicopter, which will be America's first aviator carrying the APKWS. This would enable aerial fire support missions on urban terrain.