The year 1978 brought the third and final facelift for the second generation Camaro, which received a body-colored soft streamlined nose and urethane rear bumper with wraparound taillights. T-Top panels were offered for the first time, as were alloy wheels. New Rally wheels were also offered with matching painted inserts. The two millionth Chevrolet Camaro was built at the Van Nuys, California plant on May 11.

Sales jumped to a record 272,631 units, of which 36,982 were six-cylinder models and 235,649 had a V-8. By mixing and matching titles, Camaro now had five models on offer. There was a basic Camaro Sport Coupe, a Type LT Sport Coupe, a Rally Sport Coupe and a Type LT Rally Sport Coupe, plus the Z28. Prices ranged from $4,414 to $5,065. Rally Sport models could be recognized by their various two-tone paint schemes that separated hoods, tops of fenders, tops of doors and roof with tri-color striping.

Engines were still the 105hp, 250 cid, six-cylinder, the 145hp 305 cid V-8 and the 170hp, 350 cid V-8. The Z28 was available with a 185hp 350. All California models lost about 10hp to stricter emissions.

The Camaro Z28 had front fender louvers, a scooped hood, front and rear spoilers, string-wrapped steering wheel, sport suspension, 4-speed close-ratio M21 gearbox and free flow dual exhaust. A total of 54,907 were sold, starting at $5,603.

As production climbed, the numbers of luxury options added to base cars soared. For example, 194,584 1978 Chevy Camaros were fitted with air-conditioning, 207,393 had power brakes, 233,115 had tinted windows, 239,559 had automatic transmissions, 117,035 buyers ordered tilt steering wheel, 102,563 chose rally wheels, 95,225 checked a rear defroster, and 51,008 chose power windows.

Meanwhile, 111,054 selected the style trim bright work package, 126,900 chose color-keyed floor mats, 111,904 picked drip rail moldings, 136,724 chose door moldings, and 79,002 picked door edge guards. The number of vinyl roofs plunged, probably due to complex striping and the advent of T-Tops, though only 9,875 sets of those were sold.

The 14 paint colors were evenly spread, with only a couple of duds. Silver was top (32,060), followed by Black (30,789), Dark Blue (29,788), White (28,808), Bright Blue (24,828), Carmine (24,509), Dark Camel (23,370), Camel (20,267), Light Red (16,163), Bright Yellow (15,361), Dark Blue-Green (15,030), Saffron (9,230) and an unloved Yellow-Orange (2,311). The Camaro Z28 was now available in 11 of the 14 colors.