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1978 was the last year of the Mustang II, the Mach 1, and the Cobra II option package. New to 1978 was the King Cobra option at $1277. The "Boss of the Mustang stable" had a giant snake decal on the hood and pinstripping around the windows, decklid, wheel lips, rocker panels, belt, and over-the-roof area; a large front and rear spoiler, rear quarter flares, spoke wheels, and the 5.0L V8. The Cobra II got a new stripe tape treatment mid-year with tri-color tape stripes, large "Cobra" block letters midlevel on the side and decklid spoiler, a Cobra decal on the back spoiler, and a Cobra II snake emblem on a black grille. The Mach 1 remained using the 2.8L V6, styled wheels and white lettered tires, black bumpers, black lower body side paint, and a bushed aluminum instrument panel with full instrumentation.
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