Designed in the 1960s by Steyr and adopted by the Austrian Army in 1969 to replace it aging MP40s, the MPi-69 is an economical and simple 9x19mm SMG. It uses many features seen in the Uzi, including the dual sear lugs, similar barrel nut, magazine in the grip, and telescoping bolt (first used by the Czechoslovakian guns). It has a very simple square tube receiver combined with a molded polymer grip frame. The most unusual element of the design is the charging handle, which is actually operated by pulling back on the front sling attachment point.

The MPi-69 was replaced by the MPi-81 in 1981, which was essentially the same gun with a conventional charging handle. This was in turn replaced by the 9mm version of the Steyr AUG. This one is a very scarce C&R transferrable example of an MPi-69.