Incredibly, in the middle of the oil embargo, the Chevy Monte Carlo kept growing in popularity. In 1976, 353,272 Monte Carlos were produced. Chevrolet again played with the grille and head- and taillights, but left much of the exterior the same. Two trims were available: the base S Sport Coupe and Landau Sport Coupe.

More engine options were added for this model year, including the smaller base engine, a 305-cubic-inch V8 rated at 140 horsepower. Optional engines included a 2-barrel 350-ci V8 rated at 145 horsepower, a 4-barrel 350-ci horsepower V8 rated at 160 horsepower (this was the standard engine for California), and a 400-ci V8 rated at 180 horsepower. The 454-ci V8 was dropped from the engine lineup.