The 260Z was sold in the United States for the 1974 model year only, but was available in other countries until 1978 (aside from Japan, where this model was never regularly available except for in Okinawa). The engine was enlarged to 2.6 L by lengthening its stroke bringing with it the new model code RS30. In the US, federal emissions regulations forced a reduction in ignition timing and compression ratio, resulting in a lower power output of 139 hp (104 kW) SAE net for the 260Z despite the additional displacement, whereas in other countries the power output increased to 165 PS (121 kW; 163 bhp). There was also a 1974.5 model sold through the second half of 1974 in the US that had the full 165 hp with the addition of the larger 5 mph safety bumpers, that would become the standard for the 280Z.

A four-speed or 5 speed (non US) manual remained standard equipment, with a three-speed automatic transmission optional.