Ferrari’s third incarnation of the Mondial was designated 3.2 on account of its larger capacity engine. Dropped into the familiar Mondial underpinnings, the new 3.2-litre engine was identical to those used in the 328. Designated Tipo F105 C (F105 CS for Cabriolet's), displacement was 3185cc thanks to a bore and stroke of 83 x 73mm respectively (up from 81 x 71 on the three-litre). Compression was also increased over the outgoing QV (to 9.8:1), all of which brought about another useful increase in output. With 270bhp at 7000rpm these were the quickest Mondial's yet.

A number of visual changes were also made with the introduction of the 3.2, most notably its more refined nose treatment with the light clusters and grille from the 328. The ugly matt black wraparound bumpers of earlier Mondial's were junked, 3.2's getting redesigned colour-coded items fabricated from glassfibre. There were also much prettier concave five-spoke wheels and a tidier matt black valance. As a result, the 3.2 now bore a strong family resemblance to the 328 launched alongside. Some mild alterations were made to the interior with a tidier dash and new door trim. Launched in September 1985 at the Frankfurt Motor Show, the developments introduced on these 3.2's made them the most accomplished Mondial's yet. This wasn't lost on the press who seemed to have warmed to Ferrari's junior 2+2. There were relatively few changes made during production, the most notable having been the arrival of a leather dashboard, leather headlining and ABS brakes in late 1987. ABS was then fitted as standard in 1988. Production ended in early 1989, by which time 987 Coupe's and 810 Cabriolet's had been constructed, the 3.2 being replaced by the most significantly reworked version of all, the Mondial t. One very special 3.2 Coupe was constructed by IDEA of Turin on chassis 76390, this car being commissioned by the well-known North American paint firm, PPG. IDEA produced an interesting design to say the least and one highly reminiscent of Vignale’s final design for a Ferrari, the 330 GT 2+2 Shooting Break on chassis 7963. However, the overall design lacked a little cohesion, most notably around the rear wings and cabin.