For eleven years the design was not produced and then in the late 1980s a new company was formed to produce the Tiger. American General Aviation Corporation carried out further design improvements including introducing a new split nose cowling that could be removed without removing the propeller, a new instrument panel, improved exterior lighting, a new fuel quantity indication system, a 28 volt electrical system replacing the older 14 volt system, a new-style throttle quadrant, and improvements to the heat and ventilation systems. Aerodynamic improvements raised the optimal altitude cruise speed from 139 knots (257 km/h) true airspeed to 143 knots (265 km/h) TAS. The redesigned aircraft was put into production under an amended type certificate as the American General AG-5B Tiger. American General produced Tigers for model years 1990–93 and delivered 181 aircraft in that time.

The design has a strong following among pilots and aircraft owners and so, in 1999, a new company was formed to put the Tiger back into production. Tiger Aircraft started production of the AG-5B Tiger in 2001 at their plant in Martinsburg, West Virginia. Tiger Aircraft did not produce any other models of the AA-1 or AA-5 family, although they owned the type certificates for the complete line of aircraft. Between 2001 and 2006 Tiger Aircraft produced 51 AG-5Bs.