Britten-Norman were pioneers in the field of hovercrafts. The 'Cushioncraft', built in 1960, was only the second hovercraft to be developed and they formed a subsidiary company, Cushioncraft Ltd, to devlop and sell these craft. Their location at Bembridge Airport gave ready access to the sheltered water of Bembridge Harbour. As a result of financial problems in 1971, Britten-Norman sold the Cushioncraft company in 1972 to the British Hovercraft Corporation.

After developing crop spraying equipment in the middle 1950s, John Britten and Desmond Norman designed the BN-1F, a light single-seater parasol wing aircraft. With little interest from existing airframe manufacturers, they examined market potential for a twin-engined utility aircraft with the minimum of complex systems; that could operate from short, rough airstrips; and that could also be used for high-density commuter flights. The Britten-Norman company was formed to produce the resulting aircraft, the BN-2 Islander, which first flew in 1965.

Desmond Norman then designed a four-seater touring aircraft to compete with established types such as the Cessna 172 and Piper Cherokee. A single prototype of the BN-3 'Nymph' was built and flown in 1969, but again this failed to attract significant orders. Norman set up his own company to build the plane, re-named the 'Freelance' and produced components and fuselage sections for six aircraft. Following failure to win a military order for the 'Firecracker' design, Norman's company was wrapped up. After Norman's death in 2002, his son oversaw the completion of one of the Freelances to airworthy condition.

Following the failure of the 'Nymph', Britten-Norman further developed the Islander design, which was enjoying considerable sales success. In 1970, the comapny launched the Trislander, a trimotor version with greater range and capacity.

The Fairey Aviation group acquired Britten-Norman in 1972. Following their financial troubles it was sold to the parent company of Pilatus Aircraft of Switzerland, Oerlikon-Buhle, in 1978. Oerlikon-Buhle sold Britten-Norman to Litchfield Continental in 1998. The Britten-Norman Group is now owned by members of the Zawawi family from the Sultanate of Oman, and is one of only two remaining independent commercial aircraft producers in the UK (the other being Slingsby Aviation of Kirkbymoorside, Yorkshire).

The company operates from Bembridge on the Isle of Wight although some airframes were assembled under license in Romania. In addition to aircraft manufacturing, the company also performs maintenance, overhaul and repair work as well as performing sub-contract engineering and design work.

The company's aircraft are all capable of short take-off and landing (STOL) operations. Their typical use is for inter-island schedules, but a significant number are used for police intelligence and fishery patrols, providing a cost-effective alternative to a twin-engined helicopter. Turbine-Islanders are the only fixed-wing aircraft in use by the British Army.