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The Douglas O-32 was an unarmed staff transport that was very quickly turned into a basic trainer as the BT-2. The O-32 was similar to the earlier O-29, which was itself largely based on the late production O-2H, with its unequal span staggered wings.
A single O-32 was produced in 1929. It was powered by a 450hp Pratt & Whitney R-1340-E Wasp radial engine. It was followed in 1930 by thirty examples of the very similar O-32A.
In the same year all thirty one O-32s were converted into basic trainers, as the Douglas BT-2.
The O-32 was also the basis of the Douglas O-2M, nine of which were sold to Mexico. This aircraft had the airframe and wings of the O-32, but was powered by a 525hp Pratt & Whitney Hornet radial engine. Another three slightly modified aircraft were sold as the O-2M-2.