The first-generation Legacy, which made its debut in 1989, did not receive the cosmetic and suspension modifications to create an Outback version, although Subaru offered an Outdoor option package for the 1994 model year Legacy L all-wheel drive model, which added a compressed air strut height adjustable suspension, a luggage rack, a skidplate, and mud flaps.

[8] The Outback concept originated with Subaru of America, which was suffering from slumping sales in the mid-1990s partly due to a lack of an entry in the then-burgeoning sport utility vehicle market.

Lacking the finances to design an all-new vehicle, Subaru decided to add body cladding and a suspension lift to their Legacy wagon.

Sales exceeded expectations, with Tim Mahoney, Senior Vice President of Subaru of America stating "[the Outback] saved our company.

Some Japanese-spec Grand Wagons came with digital climate control, plaid seat upholstery, a dual-range manual transmission and a Momo black leather steering wheel.

Automatic transmission models had an electronically controlled AWD system that was 90/10 front/rear and redirected differing amounts of power to the rear wheels continuously.

The "Limited" trim level package for the Outback wagon was standard equipment on the sedan body, with the addition of a hood scoop and trunk-mounted rear wing.

A new version of Subaru's flat four-cylinder "boxer" engine was standard, offering more low-end torque, better fuel economy, and smoother performance.

The Outback came standard with a 165 hp (123 kW) by SAE, 4-cylinder boxer engine, four-cylinder SOHC design with a maximum torque of (166 lb⋅ft (225 N⋅m)) that was available at a lower RPM compared to the previous generation.

Bean in the USA, it included standard features like an in-dash six-disc CD changer, automatic climate control, leather upholstery, and dual moonroofs.

The system helps maintain a safe distance on the highway, warns the driver during unintended lane departure, emits a wake up call should everyone else pull away from the traffic lights, and keeps an eye out for pedestrians.

The top-of-the-line JDM and EU diesel models also had a "Start/Stop" button, similar to those found in Lexus, Infiniti, Audi and other high end makers.

The "D" pillar on the crossover is no longer covered in glass, also ending a design tradition established with the first generation and borrowed from the Subaru XT.

A 440 W, 9-speaker Harman/Kardon audio system, using Dolby Pro Logic II technology and DTS Digital Sound, with Bluetooth and iPod capability is optional on the Limited trim packages.

The grille appearance is unique on North American models so as to provide a visual similarity to the larger facelifted Tribeca and the third generation Forester.

The "Sport # (Sharp)" mode makes throttle response more abrupt and enables the automatic transmission to maintain higher RPMs within a given gear's range, and minimizes the electric power steering wheel effort.

The GPS navigation system can be displayed in a split-screen format showing both two- and three dimensions with graphic landmarks instead of a flat screen without geographical images.

EyeSight consists of 2 cameras with one on each side of the interior rear-view mirror, that use human-like stereoscopic vision to judge distances and generally keep tabs on the driver.

Outback 2.5i Premium is available with the choice of Lineartronic CVT or six-speed manual transmission, including leather trim, memory function for the driver's seat, electric sunroof, dual zone climate control and rear air vents.

The Australian McIntosh or Harman/Kardon GPS-stereo packages are not Gracenote, G-BOOK and VICS enabled, and do not have the internal 600 MHz 40GB HDD coupled with a digital TV tuner.

[27] To reduce aerodynamic drag, the side view mirrors were mounted on the sheet metal of the front doors rather than the base of the A-pillar, as was the case with previous models.

The revised Outback was premiered at the New York International Auto Show on April 17, 2019, and went on sale at United States dealerships starting in Q3 of 2019 for the 2020 model year alongside the Legacy sedan.

[49] The 2.4-litre FA24F turbocharged gasoline engine was added to the line-up for the Sport and Touring trim levels, features dual exhaust pipes, unique six-LED foglights and an XT badge.

[56] The sixth-generation Outback was released in the European market in April 2021, in two trim levels: Touring and Field, exclusively powered by a 2.5-litre FB25D gasoline engine.

[63] The sixth-generation Outback went on sale in Mexico in December 2022, in two trim levels: Field and Touring, exclusively powered by a 2.4-litre FA24F turbocharged gasoline engine.

Interior changes include orange stitching and accents as well as water resistant "StarTex" seats, also found on the Onyx edition Outback.

[65] In October 2024, there were reported spyshots of the upcoming seventh generation Outback and appears to have a traditional SUV design instead of a lifted station wagon.

Derived from the Impreza hatchback, the Outback Sport initially featured an off-road appearance package with two-tone paint; otherwise, the mechanics of the platform were unchanged.

The first Impreza Outback Sport was introduced for the 1995 model year as a trim line based on the "L Active Safety Group", which included all-wheel-drive and front and rear disc anti-lock brakes.

In addition, the Outback Sport received a roof rack and mud flaps, but ground clearance was unchanged from the Impreza wagon on which it was based at 6.3 in (160 mm).