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With the Ford 99.5-03 7.3L, Ford not only completely redesigned their truck but also made significant upgrades to the 7.3 Powerstroke diesel engine. They added an intercooler to cool the compressed air from the turbo, which increased horsepower potential and reduced exhaust gas temperatures (EGT). The cam-driven mechanical pump was replaced with an electric lift pump to enhance fuel system performance. Additionally, Ford upgraded the Garrett turbocharger to include a wastegate and introduced new higher flowing split-shot 140cc injectors, which were larger and quieter than the previous 120cc injectors.A new 17° swash plate High-Pressure Oil Pump (HPOP), up from 15°, was added to increase oil volume and better support aftermarket performance modifications. From 1999-2000, the 7.3 engine used forged-steel connecting rods, which were replaced by weaker powdered-metal rods in 2001. Horsepower and torque were increased over the years, starting at an initial rating of 235 hp and 500 lb-ft of torque, and peaking at 275 hp and 550 lb-ft of torque in the later manual transmission trucks.

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