A new variant, designated the F7U-3M, evolved from continued efforts to improve the Cutlass as an attack airplane. This version was basically an F7U-3 with the addition of a pylon on each outer-wing panel and with internal fuel tanks added to the outer panel.  The airplane was capable of carrying four Sparrow 1 radar guided missiles, one on each pylon.  The inflight refueling system and its probe on the nose of the airplane were not included in this model.

The Naval Missile Center at Point Mugu, CA was the test center for integrating the Sparrow 1 missiles with  the aircraft, its radar system, and the fire control system.  Also the Center integrated the Sidewinder missile carrying capability into the F7U-3 and -3M.

The deliveries of the production F7U-3M airplanes to the U.S. Navy were as follows: 1 in 1953; 47 in 1954; and 50 in 1955, for a total of 98 airplanes.  These airplanes were integrated into fleet squadron service along with the basic F7U-3 airplanes during 1955, 56, and 57.  They, too, were phased out-of-fleet service in late 1957.