The idea behind the Bronco began with Ford product manager Donald N. Frey in the early 1960s (who also conceived the Ford Mustang) and was engineered by Paul G. Axelrad, with Lee Iacocca approving the final model for production in February 1964, after the first clay models were built in mid-1963. Developed as an off-road vehicle (ORV), the Bronco was intended as a competitor for the Jeep CJ-5, International Scout and Toyota Land Cruiser. Today a compact SUV in terms of size, Ford marketing shows a very early example of promoting a civilian off-roader as a "Sports Utility" (the two-door pickup version).

Initially selling well, there was a decline in demand for the Bronco following the introduction of the Chevrolet Blazer, Jeep Cherokee, and International Scout II (from 1969 to 1974), as demand shifted towards SUVs with better on-road capability.