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The Douglas O-29 was an unarmed staff transport similar to the O-2K, and based on the O-2H observation aircraft. Like the O-2K it was based on late production O-2Hs, with staggered unequal span wings and a modified tail adopted during the production run of the O-2H.
Unlike the O-2H or O-2K the sole O-29 was powered by a 525hp Wright R-1750 air-cooled radial engine when it was completed in 1929. Later it was given a 575hp Wright R-1820-1 radial engine and redesignated as the O-29A. It was also known as the Y1O-29, indicating the source of its funding.