The fourth generation Legacy formed the basis for a third-generation Outback.
The third-generation Outback was unveiled at the Frankfurt Motor Show in September 2003, offered with either the 2.5-liter EJ25 or 3.0-liter EZ30 engine.

Introduction was delayed in North America until January 2004 for the 2005 model year.
A turbocharged 2.5-liter EJ25 was added to the range in North America.
The 2.5XT trim was sold as a limited edition in Japan starting in 2008 to celebrate the 50th anniversary of Subaru.
Wheelbase and overall length grew for the new generation.

The interior and exterior styling of the entire Legacy series, including the Outback, was updated in mid-2006.
The Outback sedan, which had been limited to the North American market, was discontinued after the 2007 model year.
At the same time, the Legacy wagon was dropped, leaving Subaru with only the a single sedan (Legacy) and wagon (Outback) for the mid-size car market in North America.
The fourth generation Legacy formed the basis for a third-generation Outback. The third-generation Outback was unveiled at the Frankfurt Motor Show in September 2003, offered with either the 2.5-liter EJ25 or 3.0-liter EZ30 engine.
Introduction was delayed in North America until January 2004 for the 2005 model year. A turbocharged 2.5-liter EJ25 was added to the range in North America. The 2.5XT trim was sold as a limited edition in Japan starting in 2008 to celebrate the 50th anniversary of Subaru. Wheelbase and overall length grew for the new generation.
The interior and exterior styling of the entire Legacy series, including the Outback, was updated in mid-2006. The Outback sedan, which had been limited to the North American market, was discontinued after the 2007 model year. At the same time, the Legacy wagon was dropped, leaving Subaru with only the a single sedan (Legacy) and wagon (Outback) for the mid-size car market in North America.
Subaru Outback