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With a revised engine line up as well as other production changes, the regular '65 production continued to enjoy it's phenomenal sales success.

Gone was the puny 170 6 cyl engine that bowed out to the improved design ''T'' code 200 c.i.d six.

The ''F'' code 260 c.i. 2V engine was dropped from the lineup as the "C'' code '' Challenger'' 289 2V provided an upgrade of performance, as did the new "A" code 4V high compression "Challenger Special''. Starting in June of 1964 a potent 271 horsepower ''K'' code 289 high performance engine was made available.

With the introduction of the 2+2 fastback in '65, Carroll Shelby seized the opportunity to convince Ford executives to allow him to convert hi-po fastbacks into the famous icon of the musclecar era.

Shelby's creation was unveiled January 27, 1965, and instantly the Mustang became a racing ledgend. Two versions were available for the Shelby this first year, the street version and the terrifyingly fast race version. Because all the modifications that took place were done in small batches, many variations existed. The 289 hi-po engine was pumped up to produce a rated 306 horsepower! Shelby bolted on some of the finest speed equipment of the time not only on the engine, but also drivetrain and interior mods as well. Fiberglass hoods were used and roll bars installed where the back seat no longer resided. Suspensions were modified for handling and a detroit locker 9 inch low geared differential installed. Shelby's front disk brakes used sintered metallic linings and with it's larger Galaxie station wagon rear brake drums the pony could stop on a dime, provided you were a strong legged driver, as no power brake booster was offered.

In April of '65 two new major options became available for America's favorite ponycar. The deluxe interior and the G.T. option were introduced for Mustang's one year anniversary.