The TZ250T would remain a parallel twin for 1987, but with some significant improvements. The T Model featured improved carburetion, larger reeds and a new exhaust. Carburetors were still rearward facing with the exhaust leaving through the front of the cylinder bank. For the YZR250, however, only the ignition and starting issues recieved attention. As a result, the Hondas still outperformed the Yamahas.

Through a series of arguements and studies, 1988 saw the introduction of an entirely different parallel twin, the TZ250U. Both Cylinders were turned 180 degrees. The exhaust now shot straight out to the rear, with the carburetors poking out on the front. This design gave a cooler intake charge and moved the balance of the engine further forward and lower to the ground. A single casting crankcase was used. Yamaha decided to leave the chassis alone, with very few exceptions. This new TZ recieved a comparatively warm welcome from racers around the world. Although far from perfect, it seemed a fresh change and a glimmer of hope for Yamaha.

TZ250T cylinder