Manufactured from 1994 to 2004

In 1993 the Mustang underwent its first major redesign in fifteen years. and was code-named the “SN-95” .  It was based on an updated version of the rear-wheel drive Fox platform called “Fox-4”, which was the name for the new body style car 1999-2004. The new styling by Patrick Schiavone incorporated several styling cues from earlier Mustangs.  For the first time since 1974, a hatchback coupe model were unavailable.

The Fourth generation Mustang was the first one to be officially sold in Australia by Ford Australia. Due to the fact that this iteration was never designed for right-hand-drive, Ford Australia contracted Tickford to individually convert 250 Mustangs and modify them to meet Australian Design Rules.

The base model came with a 3.8L OHV V6 engine rated at 145 bhp in 1994 and 1995 and 150 bhp from 1996 to 1998.  Though initially used in the 1994 and 1995 Mustang GT and Cobra, Ford retired the 302 small-block V8 after nearly 30 years of use, replacing it with the newer Modular 4.6 L SOHC V8 in the 1996 Mustang GT.  The 4.6 L V8 was initially rated at 215 bhp in 1996–1997, but was later increased to 225 bhp in 1998.

For 1999, the Mustang received Ford’s New Edge styling theme with sharper contours, larger wheel arches, and creases in its bodywork, but its basic proportions, interior design, and chassis remained the same as the previous model.  The standard 3.8 L V6 had a new split-port induction system, and was rated at 190 bhp from 1999–2004 and in 2001 the bhp was increased to 193, while the Mustang GT’s 4.6 L V8 saw an increase in output to 260 bhp in the 1999 to 2004 models.  There were also three alternate models offered in this generation: the 2001 Bullitt, the 2003 and 2004 Mach 1, as well as the 320 bhp (1999 and 2001) and 390 bhp 2003 and 2004 Cobra.