For 1994, the Mustang underwent its first major redesign in fifteen years. The design, code named "SN-95" by Ford, was based on an updated version of the Fox platform. It featured dramatic new styling by Patrick Schiavone which incorporated some stylistic elements similar to those of earlier Mustangs. A convertible model would also return, but the notchback and hatchback body styles used in earlier Mustangs were no more. Prior to the redesigned Mustang's launch, a concept called the Mustang Mach III was unveiled at the 1993 Detroit International Auto Show and hinted at what the new Mustang might look like and feature. The production Mustang resembled the Mach III concept with its sweeping curves, though the production car's styling wasn't as radical. The Mach III concept also featured a supercharged 4.6 L DOHC V8 with 450 hp (336 kW). While this specific engine didn't carry over into the production Mustang, it did hint to the future use of Ford's Modular V8 in the Mustang, including the eventual use of a supercharged 4.6 L V8 similar to that of the Mach III concept.

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