Mustang got a new grille in 1968. The horizontal bars were removed and chrome trim was added, and the corral around the pony was thinner than in '67. The side scoops were thin chrome pieces, and "Mustang" on the fenders was written in script rather than block letters. 1968 was the first year for shoulder seat belts.

Ford's larger 427 was introduced on 1968 Mustang GTs. Combined with the GT's standard front disc brakes, performance tires, heavy-duty suspension, and dual exhaust with chrome quad outlets, the engine elevated this pony car it its raciest version yet. New cosmetics also were included for 1968, with new styled steel wheels in chrome or painted silver with special GT hub caps, and new "C" stripe that accented the side scoop.

The 428 Cobra Jet was introduced on April 1, 1968. A Ram Air induction setup was installed, as noted by the hood scoop and black hood stripe. The transmission options were a 4-speed manual or six-speed automatic. There was an initial run of 50 units inspired by Ford dealer and Mustang racer Bob Tasca's efforts, but eventually 2,253 CJ Fastbacks and 564 CJ coupes were produced.

The West Coast-only Mustang GT/California Special was available in 1968. The car was available only in coupe form. The Shelby-inspired car had the same grille, fog lamps, and rear fascia as the Shelby models from that year. "GT/CS" was printed on the Shelby-style side scoops. The wheels were the same as GT wheels, but without the GT center caps. Only 251 High Country Specials were produced, and they were all coupes. For more information on California and High Country Specials visit CaliforniaSpecial.com.