The 2003 Forester features weight-saving refinements such as an aluminum hood, perforated rails, and a hydro-formed front sub-frame. The most noticeable change was the offering of 2.5 L versions (normally aspirated and turbocharged) and in the U.S. the introduction of the turbocharged 2.5-liter model.

In the United States, the naturally aspirated X (previously L) and XS (previously S) were released in 2003. In 2004, the turbocharged XT trim was released. However, the same model had been available since the late 1990s elsewhere in the world. The X and XS models feature a 2.5 L SOHC EJ253 engine, while the XT model features a 2.5 L turbocharged DOHC engine. Both engines have timing belt (camshaft).[7] The XT model uses the same Mitsubishi Motors TD04 turbocharger used in the Subaru Impreza WRX[citation needed]. All Forester 2.5 L engines are of the interference engine type.

Starting with the 2004 XT, the turbocharged version had Active valve control system cylinder heads. The i-AVLS (active valve lift system) became standard on the naturally aspirated version of the Forester in 2006. This increased horsepower and torque figures to 173 HP and 166 ft-lbs. The 2006 XT received a higher compression ratio to 8.4:1 from 8.2:1. This increased the XT's power to 230 HP and 235 ft-lbs.

For the 2006 model year, Subaru gave the SG a facelift, using redesigned headlights, tail-lights, bonnet, grille, front bumper and side-moldings.

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