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The Jaguar S-Type used the famous XK straight-six engine, which was the heart and soul of Jaguar for decades. The 3.4S version produce 210hp with a high speed of about 115mph. The bigger 3.8S produced 220hp and made 0-60mph in about 10 seconds. Most of the Jaguar S-Type came with a 4-speed manual gearbox that had an overdrive switch for highway cruising. A 3-speed automatic was also available.

The "S" in the development name stood for "Southport" or "Special". This series introduced an advanced independent rear suspension which made the car handle much like newer 70s models.

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