Bluetooth could actually be ordered straight from the factory (part of the Premium Package) and functioned without dealer intervention. (Although the BMW X3 was originally offered and promised with Bluetooth support in 2004, none of the cars that shipped from the factory actually had it installed. Few were able to get it to work with a little bit of tinkering from their dealer.)

The interior was upgraded with more consistent plastic panels. Also instead of having grey carpeting which was present on all 2004 X3s, the 2005 X3 came with carpeting that matched the leather ordered (with the exception of the Terracotta interior with black carpeting).

Slightly softer suspension.

Front fenders are one piece, as opposed to the two piece found on 2004 models.

A 2.0d engine became available in some markets - joining the 2.5i and 3.0i engines (found stateside) as well as the 3.0d engine sold elsewhere in the world. An 'Open-Door' indicator was added on the 2004 models.