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By including it free of charge with their operating system, they did not have to pay royalties to Spyglass Inc, resulting in a lawsuit and a US$8 million settlement on January 22, 1997. Internet Explorer 1.5 was released several months later for Windows NT and added support for basic table rendering. The Internet Explorer team began with about six people in early development. The first version, dubbed Microsoft Internet Explorer, was installed as part of the Internet Jumpstart Kit in the Microsoft Plus! pack for Windows 95.

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Although bearing a name like NCSA Mosaic, Spyglass Mosaic had used the NCSA Mosaic source code sparingly. In late 1994, Microsoft licensed Spyglass Mosaic for a quarterly fee plus a percentage of Microsoft's non-Windows revenues for the software. Mosaic, which was an early commercial web browser with formal ties to the pioneering National Center for Supercomputing Applications (NCSA) Mosaic browser. The Internet Explorer project was started in the summer of 1994 by Thomas Reardon, who, according to the Massachusetts Institute of Technology Review of 2003, used source code from Spyglass, Inc. The browser has been scrutinized throughout its development for use of third-party technology (such as the source code of Spyglass Mosaic, used without royalty in early versions) and security and privacy vulnerabilities, and the United States and the European Union have alleged that integration of Internet Explorer with Windows has been to the detriment of fair browser competition. The IE mode 'uses the Trident MSHTML engine', i.e. Microsoft is committed to support Internet Explorer that way to 2029 at least, with a one-year notice before it is discontinued.

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Full support for Internet Explorer was discontinued on June 15, 2022, with the alternative being Microsoft Edge's IE compatibility mode for legacy sites that require it. Support varies based on the operating system's technical capabilities and its support life cycle.

After January 12, 2016, Internet Explorer 11 was the last version that had official support for consumers extended support for Internet Explorer 10 ended on January 31, 2020.

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Internet Explorer, however, remains on Windows 10 LTSB/LTSC and Windows Server 2019 primarily for enterprise purposes. This made Internet Explorer 11 the final release. On March 17, 2015, Microsoft announced that Microsoft Edge would replace Internet Explorer as the default browser 'for certain versions of Windows 10'.

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Versions of Internet Explorer for other operating systems have also been produced, including an Xbox 360 version called Internet Explorer for Xbox and for platforms Microsoft no longer supports: Internet Explorer for Mac and Internet Explorer for UNIX ( Solaris and HP-UX), and an embedded OEM version called Pocket Internet Explorer, later rebranded Internet Explorer Mobile made for Windows CE, Windows Phone, and, previously, based on Internet Explorer 7, for Windows Phone 7. Microsoft Edge, IE's successor, first overtook Internet Explorer in terms of market share in November 2019. On traditional PCs, the only platform on which it has ever had significant share, it is ranked 6th at 1.65%, after Opera. Estimates for Internet Explorer's market share in 2022 are about 0.38% across all platforms, or by StatCounter's numbers ranked 10th.

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Its usage share has since declined with the launch of Firefox (2004) and Google Chrome (2008), and with the growing popularity of mobile operating systems such as Android and iOS that do not support Internet Explorer. This came after Microsoft used bundling to win the first browser war against Netscape, which was the dominant browser in the 1990s. Internet Explorer was once the most widely used web browser, attaining a peak of 95% usage share by 2003. Microsoft Teams ended support for IE on November 30, 2020, Microsoft 365 ended its support on Augand support for IE desktop application ended on Jfor Windows 10 Semi-Annual Channel.

New feature development for the browser was discontinued in 2016 in favor of new browser Microsoft Edge. Microsoft spent over US$100 million per year on Internet Explorer in the late 1990s, with over 1,000 people involved in the project by 1999. Later versions were available as free downloads, or in- service packs, and included in the original equipment manufacturer (OEM) service releases of Windows 95 and later versions of Windows. Starting in 1995, It was first released as part of the add-on package Plus! for Windows 95 that year. Internet Explorer (formerly Microsoft Internet Explorer and Windows Internet Explorer, commonly abbreviated IE or MSIE) is a discontinued series of graphical web browsers developed by Microsoft which was used in the Windows line of operating systems (in Windows 11, Windows Server Insider Build 22463 and Windows Server Insider Build 25110, it is replaced by the Chromium version of Microsoft Edge).