The chapter analyzes Turkey’s adoption and co-production of the F-16 Fighting Falcon as a turning point in its defense modernization and aerospace industry development. Initiated after the post-embargo realignment of Turkish-American defense relations in the early 1980s, the F-16 program upgraded the Turkish Air Force and marked the start of a sustained effort to build domestic military-industrial capacity. The chapter traces the historical backdrop of US-Turkey tensions, especially the 1975 arms embargo, and highlights how this catalyzed Turkey’s pursuit of defense autonomy. It details the evolution of the Peace Onyx projects, focusing on co-production agreements with General Dynamics and later Lockheed Martin, as well as the establishment of Turkish Aerospace Industries (TAI) and engine manufacturing partnerships. These efforts allowed Turkey to domestically assemble and later export F-16s, most notably to Egypt, while simultaneously developing critical aerospace infrastructure. The chapter shows how the F-16 program became a blueprint for future defense collaborations and a model of technology transfer, industrial scaling, and strategic diplomacy. It also addresses the political friction caused by Congressional opposition in the US, the role of regional dynamics, and the long-term impact of F-16 modernization and expansion programs on Turkey’s airpower and defense industry.