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The Viper was conceived as a modern take on the classic American muscle car. While there are some who insist that the iconic AC Cobra was a source of inspiration, the final version of the Viper was far too large and heavy to seriously claim any direct lineage with the compact and lightweight vehicle. Most saw claims to kinship with the Cobra as a marketing exercise, although Carroll Shelby was involved in the initial design of the Viper.

The Viper was initially conceived in late 1987 at Chrysler's Advanced Design Studios. The following February, Chrysler president Bob Lutz suggested to Tom Gale at Chrysler Design that the company should consider producing a modern Cobra, and a clay model was presented to Lutz a few months later. The car appeared as a concept at the North American International Auto Show in 1989, and public reaction was so enthusiastic, that chief engineer Roy Sjoberg was directed to develop it as a production car.

Sjoberg selected 85 engineers to be "Team Viper", with development beginning in March 1989. The team asked then-Chrysler subsidiary Lamborghini to adapt their V10 truck engine for sports car use in May. The production body was completed in the fall, with a chassis prototype running in December. Though a V8 was first used in the test mule, the V10 which the production car was meant to use was ready in February 1990.

Official approval from Chrysler chairman, Lee Iacocca, came in May 1990. One year later, Carroll Shelby piloted a preproduction car as the Indianapolis 500 pace car. In November 1991, the car was released to reviewers with first shipments beginning in January 1992.