In 1993, they started work on the new pistol, at the Lucznik Arms Factory in Radom, Poland. It was intended primarily for the Polish Army, to replace both the obsolete P-64 and the P-83 Wanad pistols. The obvious caliber choice was the more powerful, NATO standard 9×19mm Parabellum (9mm Luger), to replace the old 9×18mm Makarov. Since the Army had not worked out technical conditions for a pistol by then, the factory worked them out on its own, and decided to design a pistol of a classic construction, utilizing the experience of the world's best designs. The lead designer was Marian Gryszkiewicz. The gun was designed by late 1993. In 1994 prototypes were tested, and an information series appeared in 1995. The pistol's operation principle is the Short recoil operation, with a mechanism similar to that of the Browning HP.
In 1995 the pistol was evaluated by the Polish Army. It had advantages over a competitor, the WIST-94, such as better reliability, durability and safety (better protection against accidental discharge, when dropped). However, the MAG model was rejected by the Army, because it did not meet technical specifications, that were set in late 1993, exceeding mass (800g) and dimensional criteria (190x135x33 mm).
In 1996 a lighter variant, the MAG-98, was designed with an aluminum frame (initially designated MAG-96), but despite the fact that the Army showed interest, it was still too heavy, by 75g, and had the same dimensions. So the competitor, the WIST-94, was accepted into ordnance in 1999. In the following years, the MAG was produced for the Polish Border Guard and Prison Guard (Straz Wiezienna) and for the civilian market, though in small series (the market for civilian guns in Poland was very small due to restrictive gun laws). The Polish Police tested the gun, but others pistols (the Glock pistol and Walther P99) won public procurements organized by the Polish Police due to their lower price.
The last produced variant was the MAG-98C, for sport shooting, with a 20-round magazine and adjustable sights. Also, a small series (up to 100 pistols) was made for the U.S. market, with a 10-round magazine. The production ceased in 2000, when the manufacturer went bankrupt.
The pistol has a good reputation among users: It is considered a precise, well balanced and durable weapon. Its mass leads to good stability during firing. It was simpler and cheaper than the WIST-94 and, in addition, some Army users preferred the MAG as a personal sidearm.
In 2008, the new variant MAG-08 was introduced, with a Picatinny rail and minor other improvements, developed by the manufacturer's successor, Fabryka Broni Lucznik. As of 2008, it has not yet been widely distributed.