On 16 December 1994, Lockheed received the launch order for the J-model from the United Kingdom's Royal Air Force (RAF). The C-130J launch order occurred after a UK government stalemate of several months that concerned whether to buy new transport aircraft from Europe or the United States. It was paired with a commitment to buy 40 to 50 of the proposed European Future Large Aircraft aircraft (FLA, which was later designated as the A400M). The FLA commitment, which reduced the size of the C-130J launch order, was intended to ensure a 20 percent British workshare in the FLA program, and to prevent German industry from threatening British Aerospace's position as the wing manufacturer on the FLA and future Airbus commercial projects. The RAF ordered 25 aircraft for a total fixed price of US$1.6 billion (~$2.87 billion in 2023), with first deliveries originally scheduled to begin in November 1996. The promised deliveries of the C-130J allowed the British Ministry of Defence to meet the 1996 deadline for replacing half of the RAF's aging fleet of Hercules aircraft, while the FLA aircraft was not at the time expected to be available until 2003.
The program suffered from problems such as software integration glitches that extended the schedule by three months, followed by a nine-month delay caused by undiscovered stall characteristics that required aircraft modification. The stall problem was caused by the additional power of the engines and the increase in propeller blades from 4 to 6, which changed the aerodynamics such that the aircraft had a greater tendency to stall and roll at lower speeds.
Lockheed Martin spent five months making 20 unsuccessful attempts at aerodynamic solutions, but the stall problems were so varied that the fixes it tried to make applied only to specific conditions (such as only during power off, or only at full power). Lockheed Martin changed the cockpit to include a stick pusher, which takes control and automatically pushes down the aircraft's nose if the pilot does not respond to stall warnings. The stick pusher was meant to be a temporary addition until Lockheed Martin could find an aerodynamic fix for all of the new stall conditions.
In late 1997, the company discovered that directional problems could be caused by ice build-ups. Because the AE 2100 engines were more powerful and fuel-efficient than the Allison T56 engines that they replaced, the engines no longer produced enough bleed air to continuously warm the tail. This situation had been anticipated, but the cyclic system that replaced the old de-icing system was found to be insufficient when the C-130J flew in extreme conditions. This problem forced the company to extend the de-icing system higher and lower on the vertical stabilizer to prevent ice formation, causing another delay of five months. These issues resulted in Lockheed Martin exceeding its initial C-130J development budget of US$300 million. By May 1998, Lockheed had spent over US$900 million (~$1.57 billion in 2023) in development costs for the C-130J. By the end of 1998, the company owed the RAF about US$50 million (~$87.2 million in 2023) in penalties due to the delivery delays.
Externally similar to the classic Hercules in general appearance, the J-model features considerably updated technology. These differences include new Rolls-Royce AE 2100 D3 turboprop engines, Dowty R391 six-bladed composite scimitar propellers that have blade tips swept by 35 degrees, digital avionics (including head-up displays (HUDs) for each pilot), and reduced crew requirements. These changes have improved performance over its C-130E/H predecessors, such as 40% greater range, 21% higher maximum speed, and 41% shorter takeoff distance. Because of the deicing problem discovered late in the certification program, the C-130J includes a black rubber deicing boot at the bottom of the vertical fin, which is another visual difference from previous versions of the Hercules. The J-model is available in a standard-length or stretched -30 variant.
The aircraft can be configured with the "enhanced cargo handling system". The system consists of a computerized loadmaster's station from which the user can remotely control the under-floor winch and configure the flip-floor system to palletized roller or flat-floor cargo handling. Initially developed for the USAF, this system enables rapid role changes to be carried out and so extends the C-130J's time available to complete taskings.
The Super Hercules has been used extensively by the USAF and USMC in Iraq and Afghanistan. Canada has also deployed its CC-130J aircraft to Afghanistan.
From the first flight on 5 April 1996 to 30 April 2013, 290 C-130J Super Hercules aircraft operated by 13 nations surpassed 1 million flight hours.
In January 2013, it was reported that some of Canada's CC-130J transports had counterfeit Chinese microchips in their cockpit displays that were made by an American Lockheed contractor L3 Communications. These parts are more likely to fail and result in failures such as blank instrument screens during flight. A 14-month investigation by the U.S. Senate Armed Services Committee concluded that counterfeit parts in the Hercules and other American-made military equipment are prone to failure with potentially "catastrophic consequences." The U.S. congressional investigation reported the fake Hercules microchips were originally made by the Korean electronics giant Samsung in the 1990s, and more than a decade later, had been recycled, refurbished and remarked to appear genuine by a different supplier from China. Samsung later stated that "it is not possible to project the reliability" of the altered parts. The U.S. investigation reported that the problems on the Hercules first came to light in 2010 when the instrument panel failed on a U.S. Air Force aircraft during active duty.
On 20 August 2013, the Indian Air Force performed the highest landing of a C-130J at the Daulat Beg Oldi airstrip in Ladakh at the height of 16,614 ft (5,064 m).
In 2015, the French Air Force ordered four Super Hercules to supplement existing capabilities due to the ongoing problems and delays of the ordered Airbus A400M, through FMS the French got two C-130J in 2017/2018 and two KC-130J in 2018/2019 (helicopter refuelling capability), especially supporting French overseas operations in Africa.
In January 2017, German defence minister announced the intention to purchase three C-130J and three KC-130J Hercules to acquire tactical airlift capabilities due to the delayed deliveries of the Airbus A400M.
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