After mixed reaction to the round headlight design, in 2001 Subaru enlisted the help of Peter Stevens of Prodrive, who updated the car's fascia in 2002 (2003 in the US for the 2004 model year), with more rectangular headlamps. For the US market, the facelifted Impreza was offered as 2.5 RS Sedan and TS Wagon, 2.5 Outback Sport Wagon, WRX Sedan and Wagon, and the new WRX STI Sedan. Sport Package was optional for the RS, and the WRX could be ordered with Premium Package. The RS, TS, Outback Sport, and WRX are available with manual or automatic transmission, while the sole transmission for the STI is 6-speed manual. This version of the Impreza has gained the nickname 'Blob Eye' among Subaru enthusiasts.
In 2005, Subaru made their AVCS standard on all engines used in the Impreza.