Paraguay took delivery of nine Embraer EMB-326s in 1979/1980, and one attrition replacement was received in 1982. Operated by the Grupo Aerotactico, five were written off and the survivors were withdrawn and stored by the end of 2003. 1009 is now used as a travelling exhibit.

Based on Aermacchi's proven MB.326 design, in 1970 Embraer acquired licence rights to build the AT-26 in Brazil to supersede the T-33 in the training role and also to provide offensive capability. They eventually produced a total of 182 EMB-326s - 167 for the FAB, nine for Paraguay and six for Togo. The Xavante name was in honour of the pre-Columbian native Brazilian warrior tribe. Interestingly two other AT-26s are preserved in Brazil, falsely marked as 4462.

Based at Natal since 2002, 1°/4° GAv 'Pacau' moved to Manaus in November 2010 and became the last operational unit to fly the AT-26 Xavante. Following the move to Manaus the unit converted to the F-5EM.

Originally flew for the 2° Esquadrao /5o Grupo de Aviaçao (2nd Squadron of the 5th Aviation Group) of the Brazilian Air Force in 1976 as AT-26/4S61. It was then purchased by the Argentinean Navy as 0785/4-A-138 for the 1st Navy Attack Squad. It was later reregistered as 0785/1-A-438 for the Naval Aviation School and then transferred back to the 1st Navy Attack Squad as 0785/1-A-138 and then as 0785/4-A-138. In 2013 it was donated to the Chascomús city government and was kept outside its airport. On Saturday, April 3, 2021 it was finally placed on its current metallic base.

(ex FAB AT-26 4612) in Falkland/Malvinas camo and armed with recce pod and rockets