The Legacy is a sleek and attractive AWD midsize sedan. Simple, elegant interior styling and upgraded trim move the Legacy closer to luxury sedan standards. The standard 175-bhp flat-4 (Legacy 2.5i) can be coupled to a 4-speed automatic or 5-speed manual. Enthusiasts will prefer the sporty 2.5GT with its 250-bhp turbo, and a 5-speed manual or automatic. The limited edition Legacy 2.5 GT spec.B has unique trim, 6-speed manual, aluminum suspension components, and 18-inch alloy wheels. Although the Legacy is comprehensively equipped, a few options include a GPS navigation system, and a Momo® steering wheel.

The Legacy line is simplified to be sedans only. All wagons are now Outback models. Legacy receives a new front fascia and grille for 2008. Steering wheel paddle shifters are standard on turbo and flat-6 models equipped with the automatic transmission. A new Legacy 3.0R with a 245-bhp flat-6 is now the top Legacy model. SI-DRIVE adjustable AWD is standard on all 6-cylinder models.