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A medium-altitude, long-endurance (MALE) unmanned aircraft system (UAS). It is powered by a Thielert Centurion 1.7 Heavy Fuel Engine (HFE). This is a Diesel piston engine that burns jet fuel, giving the aircraft better performance at high altitudes. It can operate for 36 hours at altitudes up to 7,600 m, with an operating range of 400 km.

The aircraft's nose fairing was enlarged to house a synthetic aperture radar/ground moving target indicator (SAR/GMTI) system, and targeting is also provided with an AN/AAS-52 Multi-spectral Targeting System (MTS) under the nose. The aircraft can carry a payload of 360 kg and may be armed with weapons such as AGM-114 Hellfire missiles and GBU-44/B Viper Strike guided bombs. Its sensors can fuse infrared imagery and use the SAR to scan and detect changes in terrain like tire tracks, footprints, and buried improvised explosive devices when performing a second scan.

Raytheon designed an electronic attack payload as part of the U.S. Army’s Networked Electronic Warfare, Remotely Operated (NERO) system, for jamming enemy communications on behalf of the Joint Improvised Explosive Device Defeat Organization (JIEDDO). Derived from the Communications Electronic Attack Surveillance and Reconnaissance (CEASAR) system on the C-12 Huron, mounting NERO on the unmanned Gray Eagle gives reduced risk, reduced operating costs, and two to three times the endurance of electronic attack missions. Test flights showed that the Gray Eagle could operate with the jammer payload without being subject to adverse effects.

The empty weight is 1,318kg, endurance without the external tank is 45 hours, and engine can sustain an output of 180 hp (130 kW) continuously. General Atomics has added new winglets that can increase endurance a further one percent and allow the addition of a new vertical antennae. A special operations configuration can carry two Hellfire missiles and a SIGINT payload for 35 hours, as opposed to 14–15 hours for the Block 1 Grey Eagle.

The Improved Gray Eagle has a maximum gross takeoff weight of 1,900kg with its 205hp engine, compared to the Gray Eagle's 1,600 kg MGTOW and 160 hp engine. The Gray Eagle can carry 261kg of fuel, while the IGE can carry 390kg of fuel internally with its deep belly design and 230kg centerline hardpoint. External fuel tanks can add 200kg of extra fuel, allowing for a 50-hour endurance. The IGE also increases internal payload capacity from 180kg to 240kg. Maximum speed: 309km/h; Endurance: 25 hours; Service Ceiling: 8,839m.

Armament: 4 hardpoints able to carry 4 AGM-114 Hellfire or 8 AIM-92 Stinger or 4 GBU-44/B Viper Strike laser-guided bombs.