The third-generation engine uses the Toyota C20b turbo, which was of the same design as the second-generation but with a slightly improved turbine housing and larger compressor wheel. A factory BPV is installed on all applications. The intake charge is cooled by a water-to-air top-mounted intercooler similar in shape to the ST185RC WTA. One can tell the difference as the ST205 WTA is black while the ST185 WTA is silver with a black centre. This generation does away with T-VIS and uses a normal 4 runner intake with the same port shape and size as the NA engine (but with larger injector holes for side feed). The Air Flow Meter is also removed in favor of a MAP sensing system (prior generations used a MAP sensor only for the purpose of the factory boost gauge and determining overboost fuel cut). Various increases included injector size (540 cc), boost (13 psi), overboost fuel cut limit (18 psi), intake cam lift (), throttle body size (), and a increase in exhaust ports. Exhaust valve lift is retained at . In late 1997, the block casting was revised with added support around the head to prevent block cracking problems. The C20b turbo found in this generation is backwards compatible with the second generation motors, however not the first generation. Further improvements include a factory oil catch can. Compression is reduced down to 8.5:1 however power is improved to and .