The third-generation Windom was placed on the market in August 2001, sharing a new platform with the Camry. The 4-door pillared hardtop body of the first- and second-generation models was replaced with a 4-door sedan body. The wheelbase was made 50 mm longer, and the width was extended by 30 mm to 1,810 mm. The height was also increased by 60 mm, adding to the ease of entry and exit as well as the spaciousness of the rear cabin.

The 2.5-liter engine option was discontinued, leaving the 2,994 cc, 158 kW (215 PS), V6 24-valve 1MZ-FE engine with the front-engine, front-wheel-drive layout as the only available choice. The automatic transmission system was upgraded from 4-speed to 5-speed Super ECT. Safety features included a 4-wheel MacPherson strut independent suspension, an electronic brakeforce distribution anti-lock braking system (EBD/ABS), a brake assist system, the vehicle stability control (VSC), the traction control system (TRC), and six supplemental restraint system (SRS) airbags. The 3.0G grade model came with H∞-TEMS, a nonlinear electronically modulated suspension system. In July 2003, the Windom adopted a navigation system that could deliver Toyota's G-Book network service.