The second generation Eagle Talon was introduced in 1995 simultaneously with its Mitsubishi Eclipse counterpart (the Plymouth Laser was not continued into the second generation). Mechanically, the Talon and the Eclipse were practically the same. The engines were carried over from the first generation models with only modest increases in output.

From a design standpoint, the differences between this car and its Mitsubishi equivalent were somewhat more substantial than exhibited between in the first generation. These differences were most obvious at the rear of the car. For example, the rear fascia of the Talon featured a bumper cap with a dip in the middle to allow for a high-mounted rear license plate; rear light clusters incorporating amber turn signals (the Eclipse used red turn signals); reverse lights as part of the main rear tail light assembly (the Eclipse's reverse lights were mounted separately and lower around the mid-mounted license plate); and a sickle-shaped rear spoiler for the TSi and TSi AWD version mounted at the base of the rear window that was painted black regardless of body color (the Eclipse used a body colored, conventional spoiler mounted on the rear deck). Other diffences included the cool air intake beneath the front bumper which did not have a body colored splitter (minor difference) and side skirts that were more bulbous on the Talon.

In 1997 a design update occurred for both the Talon and the Eclipse. The update was limited, primarily, to the non-metal portions of the car. The front and rear fascias were heavily revised to incorporate more aggressive looking features. At the front, a larger air intake was created and the "Eagle" emblem was enlarged and embossed into the bumper cap (as opposed to a badge that inset into a similarly shaped hole). At the rear, a new spoiler, mounted higher on a post so that it projected further into the airstream, replaced the flush-mounted sickle spoiler. Added plastic moldings on the bumper caps and doors completed the revisions to the body. Lastly, a wheel incorporating more angles replaced the curved 5-spoke wheel.