The Japanese began experiments with amphibious armor vehicles as early as 1928, and up to 1940 the Japanese Army undertook most work. After 1940 the Japanese Navy took over development of amphibious vehicles as these were to be used by the Japanese Marines.

The Type 2 used many components of the Type 95 light tank and served as the backbone for the Special Naval Landing Force. The hull was redesigned, and was of all-welded construction and fully sealed. Large pontoons were fitted front and rear to give the vehicle additional buoyancy. These were constructed of 0.12in (3mm) steel plate. The front pontoon was divided into eight compartments to minimize the effects of damage from shellfire. In the water, two propellers driven by the main engine via a transfer case propelled the tank. The Type 2 was steered in the water by two rudders, which were operated by the tank commander from his turret. Once ashore the pontoons were released by operating hand-wheels which controlled split-finger type pincer-clamps. The tank was armed with a 37mm gun in a turret with a traverse of 360 degrees, a 7.7mm machine gun was mounted co-axially with the main gun, and in the bow of the tank on the left. 132 rounds of 37mm and 3,500 rounds of 7.7mm machine gun ammunition were carried.