The third-generation Hilux went on sale in September 1978. The cover of its brochure featured a photo of an orange Hilux with ornamental white side stripes, and the heading read: "Hilux California -- born in Japan, raised in the U.S.," emphasizing the versatility of the pickup truck that routinely doubled as a passenger car or a leisure vehicle in the U.S.

The third-generation model offered sedan-like specifications and equipment as well as ride comfort. The variations included three standard-length models and four long-body models. The new top-end Super Deluxe model came with an extended cab that was 90 mm longer than a standard cab, enlarging the interior space. The 1.6-liter 12R-J engine was inherited from the previous generation. The double wishbone front suspension remained unchanged, except that the coil springs were replaced with a torsion bar. Front disc brakes were standard-equipped on the Deluxe grade models and above.

The tailgate with an embossed Toyota logo was available as an option. In October 1979, the first 4-wheel-drive model was introduced to the Hilux line, fitted with a 2-liter engine (18R-J). In December, a diesel engine (Type L) was made available to rear-wheel-drive models, which was also the first for the Hilux. In a minor makeover in October 1981, a double-cab model with two rows of seats was introduced for leisure use. Throughout this model generation, the Hilux significantly expanded its model variations.