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With its long-range 707 and medium-range 727 already in service, Boeing turned its attention to a new short-range 737 to complement the fleet. Though the new aircraft used many of the same components as its larger siblings, the 737 was originally intended to carry only 60 to 85 passengers. By the time the design was ready for production, however, that figure had risen to 100 or more.

The initial production run consisted of the -100 (100-seat) and the stretched -200 (120-seat) models. Demand for the -100 was weak and production was discontinued after only 30 were built. By the time the last -200 rolled off the assembly line, Boeing had already switched production to the second generation 737 series, the -300 (128-seat), -400 (146-seat), and the -500 (108 seat) models. Compared to the -200, these new aircraft not only featured differing lengths (due to different passenger capacities), but were also equipped with much more efficient engines allowing marked improvements in range.

Spurred by the successes of the 737 family, Boeing unveiled the third generation 737s in the 1990s. These included the -600 (108 seat), -700 (146 seat), and -800 (160 seat) models. These new aircraft feature even more fuel efficient and quieter engines as well as larger wings, improved avionics, and lower operating costs. The most recent addition to the family is the -900 model, seating about 180 passengers.

Counting all variants, some 3,800 examples of the 737 have been built by 2001 with production still proceeding, making the 737 the best-selling jetliner in history. Major competitors to the 737 series have included the DC-9, MD-80, and A320.