The Mercury Topaz was the replacement for Mercury's boxy old . The Topaz was introduced in mid-1983 as a 1984 model. as an upscale twin to the . The compact Topaz and Tempo were early examples of the design philosopy that would bring about the revolutionary 1986 . The development program was codenamed Topaz. The body structure was heavily borrowed from the Ford Escort, but due to the larger design of the Topaz there were few common componets. In 1986 the Topaz was facelifted with new flush-mounted headlights and a "lightbar" from the new Sable unlike the Sable though, the Topaz had a cooling slot. The new Topaz also got Mercury's new "Waterfall" M Logo. The Topaz received a major redesign in 1988. The car had an improved interior and a more upscale exterior which was very similar to the . The Topaz was differentiated from the Tempo by wearing a more formal style rear window, chrome waterfall grille, more upscale wheels, solid red taillamps, and a bigger trunk. New this year were the sporty XR5 Coupe and LTS "Luxury Touring Sedan" models. The Topaz received a facelift in 1992 the chrome grill was replaced with a new "lightbar" and the Sable's Vulcan V6 was now available, bringing with it a new 5 speed manual transmission. But due to slow sales in 1992, the XR5 and LTS models were discontinued. In March, 1994 the last Mercury Topaz rolled off the line as a 1994 model and was replaced with the all-new 1995 .
In 1993, officials within began talking about killing off the Topaz and Tempo. While highly innovative in their early years, and even though it was a strong seller for nearly its entire lifetime, by the early 1990s the Tempo and the Topaz were seen as an aging platform. It was also to be the last year for the 2.3 L HSC engine, which was built by Ford specifically for the Topaz (its replacement was the 2.0 L Zetec engine). Also, it was to be the last year for the FLC automatic transaxle, which had spent its entire production life with the and Mercury Topaz, and was then seen as being severely outdated as 5-and-6 speed automatic transmissions were being developed. With all of these factors, Ford pulled the plug on the Topaz and Tempo, and in March 1994, the last one rolled off the assembly line.
During the mid-1980s, the logo changed from the Cougar to its final logo, seen in the logo at the top of the page. This logo was introduced on the 1984 Mercury Topaz. Since 1999, the word "Mercury" appeared on the top part of the logo.