The third generation Discovery was the first all-new model produced under Ford's ownership.  At its inception, Discovery 3 was Land Rover's most sophisticated model being based on a new modular platform forming the basis for future models.

Also introduced was the Terrain Response System, allowing the driver to select, at the touch of a button, the best combination of suspension and transmission settings for a range of preset conditions. This is the first production Discovery 3 model to leave the Solihull plant and is to American specification, where it was known as LR3.