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The mid-cycle facelift, launched in October 1996, addressed three of the original Mondeo's biggest criticisms: its bland styling, the poor headlight performance, the reflectors of which quickly yellowed, and the cramped rear legroom. The lowering of specification levels around that time, such as air conditioning and alloy wheels, became optional on the UK Ghia models. This may have indicated a desire by Ford to cut costs and recoup some considerable sums invested in the original design. These specification levels were improved again in 1998 as the Mondeo approached replacement.

The facelift left only the doors, the roof, and the rear quarter panels on the estate the same as the original model. Even the extractor vents on the rear doors were replaced by a panel bearing the name Mondeo. The most notable change was the introduction of the grille and larger, wraparound lighting units. The saloon version featured some distinctive rear lights. These incorporated an additional reflector panel that extended around the top and the side of the rear wings. Unlike the iterations seen on the heavily facelifted Scorpio and Mk IV Fiesta during the previous year, this facelift was well received.