The 2005 model year brings the only significant exterior styling changes in the S-Type's short history. Alterations include new taillights, an all-aluminum hood, a face-lifted front fascia. Inside, the S-Type sedan has a new bronze trim finish and redesigned instrumentation. New packages include Aluminum Trim for both models, and a Vanden Plas upgrade for the V-8, which includes burled walnut, premium leather and special wheels. The Sport Package is also continued.

Despite a variety of available upgrades and the availability of the R-Style sedan, the S-Type continues with only two distinct trim levels. The sedan is available with a 3.0 liter V-6 or a 4.2 liter V-8. The V-8 models also adds several additional features. Options on both models include the aforementioned Sport and Aluminum upgrades, a navigation system, CD Changer, and the CATS suspension system.

The 3.0 liter V-6 will provide 235 horsepower and 216 pound-feet of torque, sending the 3800 pound sedan from 0-60 mph in 7.3 seconds. A six-speed manual or six-speed automatic transmission is available with this engine. The 4.2 liter V-8 generates 293 horsepower and 310 pound-feet of torque and can only be teamed with the six-speed automatic transmission. The 0 to 60 mph time is just 6.2 seconds with this engine, and fuel economy is estimated at 17/26 mpg.

The S-Type has been generally well-reviewed since a series on much-needed mechanical and electrical updates in 2003. Some issues remain, like fuel economy, features reliability (cruise control, garage door opener), some Ford-like components, and service/parts/routine maintenance costs. The S-Type has been consistently praised for the overall driving experience. Handling, responsiveness, and engine power are all top features among owners.