Debuting in December 2007, the third-generation Forester (SH platform) transitioned away from its traditional high-roof station wagon layout into a modern SUV design with a longer wheelbase and a double-wishbone rear suspension. The powertrain range included naturally aspirated 2.0L and 2.5L EJ petrol engines, a turbocharged 2.5L EJ255 (up to 230 hp), and, from 2008 in Europe, the 2.0-liter EE20 boxer diesel engine. The engineering setup effectively combined the low center of gravity inherent to the horizontally-opposed engine layout with a rigid chassis frame, delivering precise handling and composure across dry pavement and slippery surfaces alike. Engine bay packaging ensured optimal front-to-rear axle weight distribution alongside efficient thermal cooling under sustained driving loads.

A 2010 facelift updated the front grille, side mirrors, and dashboard assembly while introducing the new chain-driven FB-series FB20 (2.0L) and FB25 (2.5L) engines featuring improved efficiency. Transmission options included 5/6-speed manuals or a 4-speed automatic alongside Symmetrical AWD. Third-generation production ended in 2012. Designers placed a strong emphasis on cabin ergonomics, occupant visibility, and long-distance driving comfort. Robust mechanical reliability across the drivetrain and suspension components helped establish this generation as a benchmark choice within its competitive market segment worldwide.