The fifth-generation Cresta that debuted in September 1996 was made 20 mm higher than its sister cars (Chaser and Mark II) and 30 mm higher than its predecessor, so as to give it spaciousness and an air of a prestige sedan befitting the most formal of the three sibling models. The hardtop-like low-bodied styling and the trapezoidal front grille design that characterized the earlier models were dropped. The sport grade model was renamed from Tourer to Roulant, and the Exceed was introduced as the top grade model.

Mechanism-wise, the fifth-generation Cresta presented relatively few changes from its immediate predecessor. All gasoline engines adopted an inline 6-cylinder DOHC 24-valve configuration, with variations including 2-liter 140 PS, 2.5-liter 180 PS, 2.5-liter turbocharged 280 PS, and 3-liter 220 PS units. The 2.5- and 3-liter units adopted the VVT-i technology to improve the torque in the practical revolution range and to boost fuel economy. The previous twin-turbo engine was replaced with a single turbo version, while a 2.4-liter 97 PS turbo diesel engine was also made available. The anti-lock braking system (ABS) and dual front airbags were standard equipped on all models as passive safety measures.

Production of the Cresta was discontinued in 2001, along with the Chaser.