The Lionel Santa Fe F-3 No. 2353 was available from 1953 until 1955. In 1954, Lionel would redesign the way that the body mounted to the chassis. Gone were the two flat head screws at the rear to be replaced with a one piece bracket that would slide under the chassis and lock the body in place. Also in 1954, the body was changed with the addition of a "dimple" right behind the ventilators on the top of the body. This "dimple" would help in concealing the point where the sprue joined the body in the injection molds. This body modification would be on all future issues of the F-3.

Consistent with earlier issues, the body is painted SILVER / RED, and the stripes are applied with a rubber-stamp. However, the BLACK lettering and GM logo are applied with a heat-stamp. A "SANTA FE" decal would be placed on the front of each unit.

This version has the louvered roof ventilators, portholes with snap-in lenses, and side ladders, however, the front grab rails have been eliminated. There are operating couplers on the front ends, and solid rear couplers. This diesel was equipped with Magnetraction, a horn that was operated by a D Cell battery, and a three position directional unit whose control lever was adjustable from underneath the chassis. The dual horizontal worm drive motors powered each axle. There are two variations: Variation A: There is no dimple behind the roof vents. (1953) Variation B: Has the dimple behind the roof vents. (1953-55)

All of the Lionel F-3’s are designed to work on the larger radius of O Gauge track. When used with O27 Gauge track this diesel will scrape the switch machine housing on the early version of the No. 1122 O27 Switches when passing through the curved turnout. Evidence of scrapes on the fuel tank of these diesels is a sure indication of operation on O27 track.