The third-generation Land Cruiser, commonly known as the 40 Series, was placed on the market in August 1960. The vehicle won high acclaim as a reliable cross-country vehicle, making the Land Cruiser brand renowned across the globe.

The chassis was the same as the one used for the second-generation model, available with a short (2,285 mm), medium (2,430 mm), or long (2,650 mm) wheelbase. A 2,950 mm wheelbase chassis was also added in 1963, dedicated for pickups and cab & chassis trucks for export.

Basic body variations were similar to those of the second-generation model, including a soft-top, 2- and 4-door vans, a pickup, and a fire engine. In July 1967, the 4-door van was replaced with a newly introduced station wagon with a dedicated body (FJ55). A 3.6-liter 6-cylinder diesel power unit (Type H) was added to the engine lineup in 1973, followed by a 3-liter 4-cylinder diesel (Type B) in 1974. As the diesel versions were classified in the "4 number" (small truck) category which offered financial advantages to individual owners, these power units became the engines of choice for the Land Cruiser. A 3-speed manual transmission with a column shifter and a dashboard-controlled 2-speed transfer case was adopted, enabling the front row seats to accommodate three people.

The third-generation model was cherished for as many as 24 years throughout the world, becoming known for its nickname " 40 (forty)."