The 1996 Ford Mustang brought a line of more efficient engines to the model. Gone was the 5.0-liter V8 that had been part of the Mustang engine choices for over 20 years, across three generations of the pony car. Ford instead opted for the more efficient 4.6-liter V8 rated at 225 horsepower.

The Cobra came standard with a 4.6-liter V8 rated at 305 horsepower. The 1996 Saleen continued to provide the most thrilling ride of the bunch, with an S-351 rated at 500 horsepower.

A new color was introduced with the 1996 Mustang: Mystic. This color looks black on cloudy days, but when the sun is out, reflects purples and reds.