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The third generation Honda CR-V was launched for the 2007 model year. It went on sale in the U.S. during late September 2006. Unlike preceding models, it features a rear liftgate rather than a side-opening rear door and no longer has the spare tire mounted on the rear door. The new CR-V is lower, wider and shorter than the previous models; the length decrease is attributed mostly to the fact that the spare wheel no longer adds length to the back of the vehicle. A lowering of the center of gravity is another benefit of the spare wheel being located underneath the rear cargo area. The center rear seat pass-through was also introduced as a new feature on the third generation.

The third generation CR-V is powered by the latest version of Honda's standard K-series 2.4 L inline-four engine, similar variants were also found in the Honda Accord and Honda Element. In North American markets, this engine's power is rated at 166 hp (124 kW) at 5,800 rpm and 161 lb⋅ft at 4,200 rpm.

For 2007, Honda CR-V became one of the ten best selling vehicles of the year. It overtook Ford Explorer, which had held the title for fifteen years (1991–2006), to be the best selling SUV in the US. In Canada, the CR-V was the second best selling SUV in 2007, behind the Ford Escape.

To meet demand, Honda shifted some Civic production from East Liberty, Ohio to Alliston Plant #2, Ontario (where some Pilot, Ridgeline and Odyssey production was located until production was consolidated at Honda's Lincoln, Alabama facility) to free up space for additional CR-V production. Currently, the East Liberty plant is building 400 CR-V models a day for the Canadian and US markets. The U.S. market CR-V models are imported primarily from Sayama, Saitama, Japan and El Salto, Jalisco, Mexico in increasing numbers. In 2008, CR-V continued to be top ten bestseller and best selling SUV of the year in the U.S. Since its introduction in 1997, there were more than 215,000 CR-V sold in Canada.

For the 2010 model year, the CR-V received style, powertrain and equipment changes. The exterior changes included a redesigned front fascia with a new horizontal-slat chrome grille and honeycomb-designed lower front grille, new front bumper, and revised tail lights. The rear bumper was redesigned, as well as new five split-spoke 17-inch alloy wheels for EX and EX-L models. The interior received minor changes, including seat fabrics, as well as wider driver and front-passenger armrests. The audio head unit controls were altered and the information display backlighting in the gauges was changed to blue, instead of the previous black. A USB audio input became standard in the EX-L trim while hands-free Bluetooth connectivity was exclusive to the EX-L trim equipped with navigation system. In 2011, a mid-level SE trim debuted with a 6-disc CD changer and 17-inch 7-spoke alloy wheels that came from the pre-facelift EX and EX-L trims.

Power was increased from 166 to 180 hp (124 to 134 kW) for 2010 and mileage improved by 1 mpg for both front-wheel and all-wheel drive models. The EPA ratings were 21 miles per US gallon (11 L/100 km; 25 mpg_‑imp) / 28 miles per US gallon (8.4 L/100 km; 34 mpg_‑imp) city/highway and 21 miles per US gallon (11 L/100 km; 25 mpg_‑imp) / 27 miles per US gallon (8.7 L/100 km; 32 mpg_‑imp) city/highway respectively. Recommended oil weight changed from 5W-20 to 0W-20 from previous years with a change to the K24Z6 engine.

The 2010 model year update went on sale in the United States in September 2009.