The Sheridan was praised for its performance in Panama. A U.S.

after-action report noted that

the Sheridan's "extreme psychological effect on enemy forces" who were apparently deterred
from firing at U.S. forces reinforced by tanks.[48]

In the early days of Desert Shield, Sheridans were airlanded in Saudi Arabia before coalition
heavy armor arrived by ship. The first Sheridans sent were the M551A1 model.[49] The Army
hastily sent 60 M551A1 TTS models with the thermal sight upgrade to replace the older models.
[50]
The 3/73rd used the Sheridan as part of a flanking force in Operation Desert Storm, and saw
tank-on-tank combat.[49] Their role was limited to reconnaissance due to their age and light
armor. It is likely that no more than six Shillelagh missiles were fired[51] at Iraqi anti-tank guns or
T-55s; this was the only occasion in which Shillelagh missiles were fired in anger,[49] from the
inventory of 88,000 missiles produced. Other than some overheating problems in the summer
months of the buildup,[52] the Sheridan suffered no mechanical breakdowns in combat and
performed extremely well.[49]

Australian trials

During 1967 and 1968 the Australian Army trialled two Sheridans to determine if the type met a
requirement for light armored fighting vehicles to serve with the Royal Australian Armoured
Corps newly formed cavalry regiments. The main trials took place in the tropical Innisfail area of
north Queensland between January and June 1968. In January 1969 the Minister for the Army
announced that Australia would not purchase any Sheridans as the tanks did not meet the Army's
requirements. The main shortcoming revealed in the trials concerned the safety of the
combustible case. The two Sheridans were returned to the U.S. Army in early 1969, and the
Australian Army met its requirement by fitting turrets from Alvis Saladin armoured cars to M113
armored personnel carriers.[53]

Replacement

Navy Surface Weapons Center Sheridan mounting a 105 mm caliber gun, circa 1983

In 1977, TRADOC commander General Donn A. Starry met with Army Chief of Staff General
Edward C. Meyer to convince him that the service should retire the Sheridan. Starry had
commanded the 11th ACR in Vietnam, and knew the vehicle's shortcomings. Starry's arguments
prevailed over those of Army Material Command commander General John R. Guthrie, a
Sheridan defender, and Meyer agreed the Sheridan would be retired. The Army decided on the
M60A1 as the service's interim successor until the M3 Bradley was ready. At the time, 567
Sheridans existed in USAREUR, 535 in the continental U.S., and 41 in the Pacific. The Army
began converting units in Europe in 1978, and in the rest of the service by 1980. The Army
sustained 140 Sheridans in the 82nd Airborne Division and the National Guard. Some Sheridans
were kept in pre-positioned reserve.[54]

Several attempts to improve or replace the Sheridan have been made over the years since it was
introduced. In 1976, DARPA (followed by TACOM) initiated the High Mobility/Agility
(HIMAG) program. Several concepts were pursued, including the High Survivability Test
Vehicle – Light and the Elevated Kinetic Energy gun system. The latter was trialled on a
Sheridan hull in 1982. Following the Iran hostage crisis, the Rapid Deployment Force concept
was pursued by both the Army and the Marine Corps. The Marine Corps initiated the Mobile
Protected Weapon System (MPWS) program. In 1983, the Naval Surface Weapons Research
Center Laboratory mounted a 105 mm caliber gun onto a Sheridan chassis. The Army initiated
the Mobile Protected Gun program, and announced plans to modify Sheridans with 105 mm or
120 mm caliber guns. Neither program was pursued further; The Army project was canceled in
1985.[55]

From 1978 to 1980, under the joint Army–Marine Corps Advanced Antiarmor Vehicle
Evaluation (ARMVAL), TACOM rebuilt 10 Sheridans with the General Motors 8V53T diesel
engine and improved suspension. The vehicle's armament and some armor was removed. The
uprated engine and improved suspension improved the power-to-weight ratio and cross-country
mobility. The Army also evaluated a fully stabilized Staget sighting system.[56]

In 1987, the Army tested a version of the LAV-25, classified as the M1047. The Army
determined that these were unsuitable for LAPES, and could not match the firepower of the
Sheridan. Congress did not favor the M1047,[57] though a few were deployed with the 3/73rd
Armor in the Gulf War.[49] The Marine Corps also developed the LAV-105 to meet its
requirements, but later canceled that project as well.[58] In 1992, the Army selected FMC
Corporation to produce the Armored Gun System (AGS),[59] later type classified as the M8
Armored Gun System. The AGS was canceled in 1996 by the Pentagon before it could enter
production.[60] United Defense proposed the AGS as its mobile gun system variant in the Interim
Armored Vehicle program. In 2000, the Army instead selected a variant of the General
Dynamics' LAV III, later type-classified as the M1128 Mobile Gun System.[61] The Mobile Gun
System's problematic service history led to the vehicle's planned retirement in 2022.[62] The Army
has initiated development of a light tank acquisition program called Mobile Protected Firepower.
[63]

Design
Armament

MGM-51 Shillelagh fired from a Sheridan

Building a vehicle lighter than the T92 required an innovative solution for the main armament. A
gun firing kinetic energy penetrators to defeat modern tanks at reasonable range was too large for
the XM551; gun weight was typically dependent on caliber and muzzle velocity. This was solved
by arming the XM551 with a 152 mm M81 gun firing low velocity M409 HEAT rounds. The
large caliber ensured it would produce a powerful shaped charge effect capable of penetrating
tank armor, since velocity has no effect on shaped charge penetration, while the short gun would
reduce overall weight.

The gun was ideal for infantry support. The large, low velocity gun could fire a large explosive
shell or canister shot. In comparison, high-velocity anti-tank guns over-penetrated soft targets,
while smaller caliber weapons could not carry as great a payload.

The M81E1 was not ideal in medium- and long-range tank engagements as its low velocity
produced extended flight times, and made it difficult to lead moving targets. Therefore, the gun
was also designed to fire MGM-51 Shillelagh anti-tank missiles.[64] The low launch velocity
against longer-ranged targets was not an issue for the missile. However, the MGM-51 was
considered a risky project.

A number of existing vehicles already mounted only ATGMs, or alternately recoilless rifles like
the M50 Ontos, but these typically had limited utility in the infantry support role, or in the case
of Ontos could not be reloaded from within the vehicle. The XM551 appeared to offer a superior
balance between anti-tank and infantry support.
Sheridan with late modifications and ACAV shields
Mobility