A light tank (10 tons) with a crew of three, developed in the mid 1930s as an interim until the arrival of the Panzer III and Panzer IV medium tanks. Despite being primarily intended as a training tank, it was the main tank in the Blitzkrieg invasions of Poland and France, where about 1000 Panzer IIs participated. It also participated in the invasion of Russia in 1941, although it was already obsolete, and lacked armor and firepower. It was armed with a 20mm gun (with 180 rounds) and a coaxial 0.3" machine gun.

The Panzer II was also the basis for several special tank types: a fast recon tank, an amphibious tank, equipped with a propeller, developed for the intended invasion of England in 1940, and a flamethrower tank ( called Flammpanzer II ) equipped with two flamethrowers (100 were in service by 1942).

When the Panzer II tank became obsolete, it was converted to a self-propelled anti-tank gun, using captured Russian 76mm guns ( called Marder I ) and German 75mm guns ( Marder II ). A self-propelled 105mm artillery gun version ( called Wespe ) was produced in occupied Poland.