Released in 1976, and produced until 1979, the XC Falcon was the last face lift of the third generation Falcon. The design was softened from the previous models to reduce the coke bottle effect. Other design changes included a restyled grille and larger bumpers, the Fairmount also included modern looking rectangular headlights. The XC was first model Falcon to comply with new pollution regulations, but the new regulations did not reduce power output thanks to the Ford engineers.

The XC utility was available in the Falcon or Falcon 500 models, both models were able to be personalized with many options. The GS Rally pack could be added and included Sports Steering wheel, comprehensive dash instrumentation, 'NASA' bonnet scoops, slotted sport rims, driving lights, bumper over-riders and blacked out badges.

The standard XC Falcon Utility was available in a 3.3 litre engine and was able to be upgraded to either a 4.1 litre or 4.9 litre. The GT was removed from the XC lineup, but the 5.8 litre was still available with the GT Power Pack option. The Power Pack also included 4 wheel disc brakes and limited slip differential.