Ljubomir Ilic and Kosta Sivcev started to design the IK-3 in 1933. In 1936 the drawings were turned over to the military for evaulation.
The fuselage of the IK-3 had a steel tube airframe with canvas and metal covering.
The wing was mainly constructed of wood with some steel tube reinforcements.
Avia built the Hispano-Suiza engine on license. The IK-3's engine drove a metal three bladed variable pitch propeller.