The ZTZ-96 was the designation given to the Type 85-III modified for mass production in PLA service. In its initial version it differed little from its predecessor, retaining the general layout as well as the 125-mm smoothbore gun as well as additional composite armor plates on the frontal arc coupled with ERA protection. A more comprehensive redesign resulted in the Type 96G which is easily distinguishable by the arrow-shaped modular armor on the turret front which resembles that of the Leopard 2 and also that of the ZTZ-99 which was developed concurrently. The turret also includes prominent stowage racks (emulating Western practice as seen on the M1) on the turret sides which double as extra protection against HEAT rounds. It also features a host of equipment upgrades including a new computerized fire-control system, thermal imaging sights and a soft-kill system against ATGMs. This has helped bring it close to the standard of the ZTZ-99, making it a veritable third-generation tank. The ZTZ-96 is currently in service in large numbers with the PLA; as of 2020 it was the second most numerous tank in the Chinese inventory, only behind the Type 59. The only export customer is Sudan which has allegedly used it in combat against South Sudanese T-72s.

The original ZTZ-96 (industrial designation WZ 122H) was directly based on the Type 85-III (also known as the Type 88C) with only minor modifications for PLA service. It was followed by the ZTZ-96A (also known as the ZTZ-96G), a substantial redesign which incorporates modular armor in a new arrow-shaped turret as well as numerous equipment upgrades to bring it to close to third-generation standard. An export version is known as the VT-2. The most modern version is the ZTZ-96B which has an improved engine, gun, fire-control system as well as a host of mechanical and equipment upgrades.