Production of the KrAZ-260 began some time during the early 1980s when it replaced the earlier KrAZ-255B on the production lines at the Kremenchug Motor Vehicle Plant. However, the vehicle was not disclosed to the general public until 1985 when examples were displayed towing 152-mm 2A36 nuclear-capable field guns during a Red Square parade – the KrAZ-260 can tow loads of up to 10 000 kg when fully loaded (30 000 kg when empty). The Red Square example had an open body equipped with forward-facing bench seats although this had been a parade configuration. The normal body uses a conventional cargo body with tailgate all covered by the usual tilt over bows. A winch is a standard fitting under the cargo body and can be employed for either forward or rearwards recovery, including self-recovery.

The overall appearance of the KrAZ-260 is similar to that of the earlier KrAZ-255B but the bonnet is more angular to accommodate the turbocharged diesel engine, and the overall dimensions are slightly larger. As far as can be determined the KrAZ-260 was produced for military service only and as apparently not been delivered to armed forces outside the Soviet Union.

Variants known to exist include the KrAZ-260V tractor truck, used to tow a variety of semi-trailers, and the KrAZ-240. It was also used to tow platforms with S-300 missiles. This tractor truck has a 6×4 drive configuration, a slightly longer wheelbase (4,88 m + 1.4 m) and an on-road load capacity of 16.8 t; it is used for long range logistic support duties, leaving the KrAZ-260 for forward area load carrying.

In 1999 this heavy utility truck was succeeded with improved KrAZ-6322.