"The Beauty of Japan" was the design theme of the third-generation Crown released in September 1967. The graceful styling, which used curved glass even on the side windows, represented the first automobile design created at Toyota's Design Dome facility that was completed in 1966. The third-generation Crown was vigorously marketed to individuals interested in owning a car. Reflecting this strategy, the advertising campaign featured a white Crown, emphasizing that the car was suitable for individuals (who tended to favor white cars) rather than companies and agencies that generally preferred black cars.

The model varieties included the Owner Deluxe which came with a good selection of accessories at a relatively reasonable price tag, and the 2-door hardtop (released in October 1968) for purely personal use. The engine could be chosen from four 2-liter 6-cylinder Type M engines (producing 100/105/110/125 PS, respectively) and a 2-liter 4-cylinder Type 5R engine (93 PS). The marketing strategy proved quite successful, leading to a rapid increase in the number of individual customers. The X-shaped frame of the previous Crown was replaced with a perimeter frame, which was to be used for more than two decades afterwards. During this model generation, the Masterline commercial-use vehicle was renamed the Crown van/pickup, though the pickup model was discontinued at the end of this model generation.