The Mercury Monterey was first introduced in 1950 as part of the Mercury Eight series and was in the same category as the Lincoln Lido, the Ford Crestline and the Lincoln Cosmopolitan Capri coupe.

The Mercury Monterey was supposed to compete with the coupes that featured hardtops and had been introduced by General Motors in the previous model year. The Monterey featured either a vinyl top or a canvas top with only a few dollars difference in price between the two options.

Standard features for the Monterey included wool carpets, leather-faced seats, interior garnish moldings that were chrome-plated, simulated leather headliners, two-toned dashboards, fender skirts, two outside rearview mirrors, gold-winged hood ornaments, black steering wheels and full wheel covers. The car was offered in several colors: turquoise blue that came with a dark blue top and a red metallic that came with a black top. A black car that came with a yellow top was also an option.

The Monterey received engineering and styling redesigns for 1952. The Monterey was separated from the Mercury Eight series and became Mercury's top model line. The new series included a four-door sedan as well as a convertible. A station wagon was introduced in 1953. This was the same year that a red convertible, the Monterey, became the 40-millionth Mercury-produced car produced. In 1954, a bubble-top Monterey was introduced. The Monterey Sun Valley had a front half roof that was made of Plexiglas. This design was similar to the Crestline Skyliner by Ford.

By 1955, the Monterey lost its former status as Mercury's top model and was replaced by the Montclair. In 1956, a new engine was added and Lifeguard safety equipment was included. During the next few years Mercury revamped many of its cars. Due to demand for more fuel economy in 1959, the Monterey was returned to a 312 engine with 210 hp. In order to keep up with the trends of the time, the Monterey underwent many redesigns over the years.

There was a trend towards boxier cars in the 1960s and many of the Mercury offerings were discontinued. In 1964, with the return of the Park Lane and the Montclair, the Monterey became an entry-level full-sized model once again. In 1969, the Mercury line was redesigned to resemble the Lincoln Continental. The Monterey and its Mercury Eight series companion cars were part of the second best-selling Ford car platforms and were behind only the Ford Model T in sales. The car ceased being manufactured in 1974.