Sold between October 2005 and February 2008 in sedan and utility body styles or as a wagon until June 2010, the BF series brought many mechanical upgrades, including but not limited to a raised compression ratio (10.3:1) and improved now-independent dual variable cam timing on the six-cylinder engines and improved knock sensing on the DOHC 3 Valve V8 engine which, in conjunction with ECU modifications, led to increases in power, torque and fuel economy, required to comply with recently introduced Euro III emissions standards.

The XR6 Turbo got a power increase to 245 kilowatts (329 hp), along with all XR sedans receiving the ZF six-speed automatic as an option.

The Fairmont Ghia also featured a sportier body kit with side skirts, designed to make the car more attractive to younger buyers.

In the final months of production (July 2007 onwards), the XR6, XR6 Turbo and XR8 received a special edition body kit with dark gray inserts on the bumpers and skirts (November 2007 onwards, known as the 'Aggressor' body kit), shadow chrome 18" alloys with dark gray inserts on the spokes, and Premium Sound/Climate Control as standard.

The Falcon Mk III gained Dynamic Stability Control (available on petrol powered models only), the new flip key from the FG series, satin alloy accents on the front grille surround, ‘Warm Charcoal’ carpet, Goodyear Excellence tyres and rear Mk III badging on the boot lid.

Engine specifications remained largely unchanged apart from software updates for idle stabilisation in V8 equipped GT and GT-P. Of particular note, the BF & BF2 Boss 290 engines were fitted with a standalone air-to-oil transmission heat exchanger behind the front bumper, permanently eliminating any 'milkshake' problems common to all other lower spec BF cars.

All models share the same six-speed manual and were now offered with an optional ZF made German six-speed automatic (as equipped in Jaguars and BMWs, but software specifically recalibrated by FPV- entering Sport Mode added 100 driver points of aggressiveness to shift speed, firmness and heightened rpm shift points over everyday normal driver Eco mode).

Minor changes such as a new knurled power mirror control switch knob and interior footwell illumination were introduced with this update; however, all models now came standard with 19-inch rims.

These had unique Argent Dark Silver colour accents on wheels and spoilers, Nappa leather upholstery, R-Spec floor mats, Brembo 4-pot front brakes, ten of these R-Spec Typhoons were exported by Ford Australia into Ford New Zealand, of that ten, one was fitted with a 6-speed manual transmission and the other nine were equipped with 6-speed automatic transmissions.