In April 1917, Albatros received an order from () for an improved version of the D.III. The resulting D.V prototype flew later that month. The D.V closely resembled the D.III and used the same 127 kW (170 hp) Mercedes D.IIIa engine. The most notable difference was a new, fully elliptical cross-section fuselage which was lighter than the partially flat-sided fuselage of the earlier D.I through D.III designs. The new elliptical cross-section required an additional longeron on each side of the fuselage and the fin, rudder and tailplane initially remained unchanged from the D.III. The prototype D.V retained the standard rudder of the Johannisthal-built D.III but production examples used the enlarged rudder featured on D.IIIs built by the (OAW). The D.V also featured a larger spinner and ventral fin.