The T-33 was developed from the Lockheed P-80/F-80 by lengthening the fuselage by slightly over three feet and adding a second seat, instrumentation and flight controls. It was initially designated as a variant of the P-80/F-80, the TP-80C/TF-80C.

Design work for the Lockheed P-80 began in 1943 with the first flight on 8 January 1944. Following on the Bell P-59, the P-80 became the first jet fighter to enter full squadron service in the United States Army Air Forces. As more advanced jets entered service, the F-80 took on another role—training jet pilots. The two-place T-33 jet was designed for training pilots already qualified to fly propeller-driven aircraft.

Originally designated the TF-80C, the T-33 made its first flight on 22 March 1948 with U.S. production taking place from 1948 to 1959.

The US Navy used the T-33 as a land-based trainer starting in 1949. It was designated the TV-2, but was redesignated the T-33B in 1962. The Navy operated some ex-USAF P-80Cs as the TO-1, changed to the TV-1 about a year later. A carrier-capable version of the P-80/T-33 family was subsequently developed by Lockheed, eventually leading to the late 1950s to 1970s T2V-1/T-1A SeaStar.

The two prototype TF-80Cs were modified as prototypes for an all-weather two-seater fighter variant which became the F-94 Starfire.

A total of 6,557 Shooting Stars were produced, 5,691 by Lockheed, 210 by Kawasaki and 656 by Canadair.