The Toyota Supra Mark III and was the last model to be directly based on the Toyota 2000GT's engine, and this generation ran from mid 1986-1992, an it was at that time the longest running production period for the Supra line with approximately seven successful years. This model also marked the total independence of the Supra line from the Celica attributes and name, as the 2+2 fastback became its own entity. It also debuted its very own engine platform, and also kept the rear wheel drive platform, as the dimensions of the car consisted of a wheelbase of 2595.9mm, a length of 4620mm, a width of 1744.9mm, a height of 1310mm, and a curb weight of 3468lbs, with the four speed automatic having a weight of 3516lbs.



The engine of the new Supra was 3.0 litre Inline 6 that was naturally aspirated and had a horsepower of 200bhp (149kW) and a torque of 265Nm (196ft-lb). This engine became the flagship engine for Toyota at the time, but in 1987 a turbocharged 7M-GTE engine was introduced and both engines had DOHC with four valves per cylinder. The C T26 turbocharger engine was Toyota's very first engine without a distributor, which utilized coil packs on cam covers and a cam position sensor just off the exhaust camshaft. The power output measured 230bhp (172kW) at 5600rpm, but with later improvements to the turbo through the revamped wastegate, pushed the performance to 2bhp more in 1989. The naturally aspirated engine came with W58 manual transmission, whereas the turbo engine has R154 manual gearbox. During this year a number of visual parts got a makeover with the bumpers, steering wheel, side trimmings, and taillights, among other things. Further changes to the wastegate on the turbo engine again increased to 2bhp (1kw) more.

In the production year 1991, the car got a five spoke wheel design where both car models (turbo and non-turbo) had 16 x 7 aluminum alloy wheels that were wrapped in 225/50/16 tyres, and it was the last Supra year for the hood struts as well. And like the prior generations the status and features of the cars changed from place to place, as the Japanese non- export models carried much faster sporting engine that pumped out 280bhp (209kW). The Japanese model of the Supra MK III, the Turbo R, was the fastest and sportiest factory version of the car as it clocked 14 seconds on the quarter mile.

The Supra Mark III showed of a lot of interior and mechanical technologies, such as Toyota Electronically Modulated Suspension (TEMS) that gave the driver two settings that altered the damper rates, but a third setting was automatically activated at hard braking, high speed maneuvering, and WOT. Another innovative feature was the four channel ABS system, as well as the Acoustic Controlled induction System (ACIS), which is a way of managing the air compression pulses within the intake piping as to increase power. All models that year were outfitted with wishbone suspension all round and also came with the option of metal power sliding sunroof and a targa top.

There was also the creation of the Group A touring model known as the Turbo A, and 500 models were produced and sold within Japan in 1988. The Supra third generation had a long successful run world over, and bowed out in 1992 for the Mark IV.