The Navy's FY 2016 budget included funding for an AARGM-Extended Range (ER) that uses the existing guidance system and warhead of the AGM-88E with a dual-pulse solid rocket motor to double the range. In September 2016, Orbital ATK unveiled its AARGM-ER, which incorporates a redesigned control section and 11.5 in diameter (290 mm) rocket motor for twice the range and internal carriage on the Lockheed Martin F-35A and F-35C Lightning II, with integration on P-8 Poseidon, F-16 Fighting Falcon, and Eurofighter Typhoon planned afterwards; internal carriage on the F-35B is not possible due to internal space limitations. The new missile, designated AGM-88G, utilizes the AARGM's warhead and guidance systems in a new airframe that replaces the mid-body wings with aerodynamic strakes along the sides with control surfaces relocated to low-drag tail surfaces and a more powerful propulsion system for greater speed and double the range of its predecessor. It weighs 1,030 lb (467 kg) and is slightly shorter than earlier variants at 160 in (4.06 m) in length.


The U.S. Navy awarded Orbital ATK a contract for AARGM-ER development in January 2018. The USAF later joined the AARGM-ER program, involved in internal F-35A/C integration work. The AARGM-ER received Milestone-C approval in August 2021, and the first low-rate initial production contract was awarded the next month; initial operational capability was planned for 2023. The AARGM-ER completed its first, second, third, fourth, and fifth flight tests in July 2021, January 2022, July 2022, December 2022, and May 2023 respectively
- February 2023, the U.S. Navy began exploring the feasibility of launching the AARGM-ER from ground-based launchers and the P-8 Poseidon.
- February 27, 2023, Australia asked to purchase up to 63 AGM-88G AARGM-ERs.
- June 5, 2023, The Netherlands announced the acquisition of the AARGM-ER for the use on their F-35A fleet.
- October 23, 2023, Finland was approved by the U.S. State Department to proceed with purchase of up to 150 AGM-88G AARGM-ERs.
- January 12, 2024, Lockheed Martin was awarded a contract to integrate the AARGM-ER with all three F-35 variants.
- April 24, 2024, the U.S. Defense Security Cooperation Agency (DSCA) made it public that the State Department has approved a possible Foreign Military Sale to the Government of the Netherlands of the AARGM-ER and related equipment for an estimated cost of $700 million.
- September 27, 2024, the U.S. State Department approved the sale of $405 million worth of AARGM-ERs to Australia.