The 2007 model of the Defender had some of the biggest changes for a number of years. The biggest change was the engine, utilising the 2.4Tdci Ford Duratorq "Puma" engine as fitted to Transit vans. The engine was modified slightly with a deeper oil pan and better throttle response for fitment in the Defender.

This was mated to the MT-82 gearbox, bringing 6 gears to the Defender for the first time. First gear was lowered to help when towing and sixth gear was made taller. The transfer box also became the 1.2 high ratio version typically fitted to the Discovery.

Some of the most noticeable changes were in the interior. An entirely new dashboard was created that looked more modern and finally brought some better ventilation. Due to this, the traditional bulkhead vents were deleted. The front seats were made taller and the headrest design changed to a semi-circular shape. The second and third row seats were massively upgraded with full 3-point seat belts and anchored securely to the chassis.

Also, the rear tub wheel arches are noticeable by having a stepped cutout along their length and the front wing inners were now made of plastic instead of galvanised steel.

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