The DA42 Twin Star was certified in Europe in 2004 and in the United States in 2005.

The airplane is made of carbon composite material. It is equipped with a Garmin G1000 glass cockpit.

The DA42 Twin Star was the first diesel-powered fixed-wing aircraft to make a non-stop crossing of the North Atlantic, in 12.5 hours, with an average fuel consumption of 5.74 gallons per hour (2.87 gallons per hour per engine).

In June 2010 a DA42 powered by Austro AE300 engines became the first aircraft to be publicly flown on algae-derived jet fuel.

By March 2012 the DA42 had become the major income driver at Diamond Aircraft. Company CEO Christian Dries indicated that the market focus of the company had been changed by the recession of 2008-10 and that the company now derives two-thirds of its revenue from military and government contracts, primarily for manned and unmanned DA42 surveillance aircraft.

Also in March 2012 Diamond aircraft announced they were developing a fly-by-wire version of the DA42, with the aim of reducing the accident rate in light aircraft. The system is expected to eventually include flight envelope protection, turbulence righting and autoland capabilities. The system will also include damage-tolerant by-pass capabilities, allowing flight with jammed or missing controls.