The E38 is the third generation of the 7 Series, which was produced from 1994 to 2001. The E38 was the first car available with curtain airbags. It was also the first European car to offer satellite navigation[9] and the first BMW to offer an in-built television. In 1999, the model received a facelift.

With the vehicle being fitted with a navigation system, the HVAC pipes behind the stock navigation screen mean that only a mechless head unit can be fitted.