SMS Prinz Eugen was the third of four Tegetthoff-class dreadnought battleships built for the Austro-Hungarian Navy. Prinz Eugen was named for Prince Eugene of Savoy, a Habsburg general and statesman during the 17th and 18th centuries most notable for defeating the Ottoman Empire at the Battle of Zenta in 1697. The ship was armed with a main battery of twelve 30.5 cm (12.0 in) guns in four triple turrets. Constructed shortly before World War I, she was built at the Stabilimento Tecnico Triestino shipyard in Trieste, where she was laid down in January 1912 and launched in November that same year.

The Tegetthoff class was a class of four dreadnought battleships built for the Austro-Hungarian Navy. Named for Austrian Admiral Wilhelm von Tegetthoff, the class was composed of SMS Viribus Unitis, SMS Tegetthoff, SMS Prinz Eugen, and SMS Szent István. Construction started on the ships shortly before World War I; Viribus Unitis and Tegetthoff were both laid down in 1910, Prinz Eugen and Szent István followed in 1912. Three of the four warships were built in the Stabilimento Tecnico Triestino shipyard in Trieste; Szent István was built in the Ganz-Danubius shipyard in Fiume, so that both parts of the Dual Monarchy would participate in the construction of the ships. The Tegetthoff-class ships hold the distinction for being the first and only dreadnought battleships of the Austro-Hungarian Navy. The SMS Szent István had a different more modern propulsion system than her sister ships.