For 1975, the Mustang II received unleaded fuel reqirements, and a V-8, finally, due to the complaints Ford heard from a number of buyers that still wanted performance, and the end of the oil-embargo. It was the 302 that was chosen, rated at only 122 hp because of the new emissions requirements such as the catalytic converter, which was found on all Mustangs starting in 1975. The 302 V-8 was only available with the Automatic transmission. Because of the inclusion of the V-8, the front end of the Mustang II changed.

A thinner grille opening panel, and a shallower grille now flush with the opening, to make room for the bigger engine. This change was applied to all models regardless of engine type.

New changes for the Mustang Ghia were rear quarter opera windows, replacing the standard ones, and a half-vinyl roof, replacing the full width one, which was still available on all coupes as an option. A new option package for the Ghia was the Silver Luxury Group, which was an all-silver Ghia with silver half-vinyl roof, Cranberry cloth interior, and a stand-up hood ornament.

New steel-belted radial tires were now standard, replacing the Bias-belted ones. Near the end of the production year, the windshield-wiper controls were relocated from the instrument panel to the more-convenient turn-signal lever, a change that occured on many Fords.