In 2001, Honda announced the release of the Civic Type-R for the EP chassis, a more sporty variant of the most recent model of Civic and successor to the EK9 Civic Type-R. Unlike the original EK9 version, which was produced solely in Japan, the EP3 Civic Type-R was produced in the United Kingdom and exported to Japan. The EP3 Civic Type-R had a specific output of 200 PS (197 hp/147 kW) at 7400 rpm, a redline of 8000 rpm, a six-speed manual transmission, reworked exterior with a bullet-like hatchback design, aeroform bumpers, spoiler, and 17 in wheels. A switch to front MacPherson struts was made for this generation, while the rear retained double wishbones. The interior of the Type-R includes Recaro seats and a Momo steering wheel, and the model also includes Type-R-specific badging, a helical limited-slip differential, and has been reported to accelerate from zero to 60 mph in about 6.6 seconds (6.4 in facelifted model).

Near the end of the 2003 production models Honda changed the Civic. The grill was changed to a single bar instead of louvers and the gauges on the dash were changed to a more sporty look. The tail lights remained the same but when illuminated created a circle.

The new Sport Hatchback model with futuristic styling was unveiled in August 2005 for the European market only. This model featured from launch a 1.4 L I-DSI and a 1.8 L i-VTEC rated at 83 PS (81 hp/61 kW) and 140 PS (138 hp/103 kW) respectively, with 177 and 207 km/h (110 and 129 mph) top speeds and 14.2 and 8.6 sec 0-100 km/h sprint. The Sport Hatchback is also available with a 2.2 L I-CTDI diesel engine from the Accord, Edix/FR-V and CR-V, rated at 140 PS (138 hp/103 kW) and is capable of 205 km/h (127 mph) and accelerating from 0-60 mph in 8.4 seconds.

1.) Coupe – Trims available in the coupe body style were the DX (up to 2003), EX, HX and LX (EM2).

2.) Hatchback – The Si (EP3), marketed as the SiR in Canada, was the only hatchback of its generation.

3.) Sedan – Trims available in the sedan body style were the DX, EX, GX (starting in 2003) and LX (ES1/2, EN2, ES1, respectively).

All DX and LX models had the D17A1. The HX had the D17A6 and the EX had the D17A2. The Si had the powerful K20A3. The GX ran on CNG, but the option to have the gasoline version of the engine became available in 2005.