Although it immediately succeeded the larger RD400, the RD350LC was powered by a smaller 347cc parallel twin two-stroke engine which actually had the same bore and stroke as the older RD350 (64 x 54mm).

However, Yamaha added liquid cooling and made other modifications in porting and exhaust to comply with ever-tightening emissions regulations.

The RD350LC was later replaced by the RZ350 / RD350LC II / RD350 YPVS in 1983, but the LC(1) was also sold in that year alongside the new bike.

The RD350LC was aimed at the European market alongside the smaller capacity Yamaha RD250LC.

The RD350LC constantly evolved throughout its life and it was made in Brazil in the final years, as the RD350R.