Renault gave the Clio another facelift in late 1996 to further appeal, and meet new European safety standards. The biggest difference to styling is the new, larger headlights, which gives the car a more 'bug-eyed' look that seems to be the popular style of small European cars. New, smoother front and rear bumpers with integrated grille and 'Renault Megane' style fog-lamps add to the look, while new airbags and a third high-level brake light was added to all models. The 'Clio' name badge had a new smoother 'font' - inline with the rest of the Renault car range at the time.

A new 1.2 engine was introduced called D.I.E.T. (Dynamic Integrated Eco Technology) to replace the older 'Energy' unit. Producing the same 60bhp, but a lot more torque and using a revised gearbox, it gives the car the best performance figures in it's class, and yet manages better fuel economy than the old engine. It also features fewer moving parts to enhance reliability and reduce servicing.