The B-50C was one of those aircrafts that did not make it into the sky. In the early stages of development, the B-50C went through design modifications including massive changes in its engines. Four R-4360-43 turbo-compound engines were incorporated.

These new engines demanded a redesign of the airframe to give it a wider wingspan and longer fuselage. These variations demanded a new name; so iIt was re-named as XB-54. 

Late in the year 1948, it was certain between the B-50C and its predecessors were enough to call for a new designation. The B-50C then became known as the B-54. By this time 14 standard and 29 reconnaissance versions of the plane were on order.

The new XB-54 also faced weaknesses which raised doubts about its feasibility. As it was a derived design; there was modest growth probable. The designers found out that they cannot install the jet engines without redesigning the wings. Also, installing the K-1 bombing system would require redesigning the fuselage. More over, the aircraft needed a wider than standard runway. General Curtis LeMay suggested that that the program should be scrapped and production of B-36s should be expanded. General LeMay felt that it would be better to cut production for the B-54 entirely order more B-47s instead. The Board of Senior Officers agreed with LeMay and the B-54 program was canceled on April 5, 1949. The partially-built YB-50C was also canceled.