In the European and Australian versions, the name was changed to "Ace Combat: Distant Thunder".

After the September 11 attacks, Namco had to postpone the broadcast of a Japanese commercial for the game, which was scheduled for September 12. The catastrophe also forced Namco to alter the design of the mission "Invincible Fleet", which contained towers that would become wreathed in the smoke of the sinking Tanager battleship.

The development of the game began after the release of Ace Combat 3: Electrosphere between mid-1999 and 2000, and the game was designed from the start to be a PlayStation 2 launch title. The technical upgrades offered by the console's hardware led the Electrosphere staff to view the game as a "return to zero" that was chosen to retain the core dogfighting mechanics of the previous titles, leading the game to be tentatively titled Ace Combat 01 in early design documents to represent its status as a "reboot" of the series.