From Jonathan Lamas,
Your Guide to Mustangs.
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A. No, it doesn’t stand for good times, but chances are if you own one you’ll probably experience plenty. GT most commonly stands for Grand Touring or Gran Turismo. A vehicle given the GT designation by its manufacturer generally means the vehicle is high performance and, unlike a race car, features an interior built for comfort. More specifically, the Random House Unabridged Dictionary defines GT as “an automobile in the style of a coupe, usually seating two but occasionally four, and designed for comfort and high speed.”

The first Ford Mustang GT dates back to April of 1965. At the time, Ford began to offer 1965 Ford Mustangs with an optional GT equipment package. The package was available for Mustangs featuring the 289 cubic inch V-8 engine. This “special GT package” included GT trim, front disc brakes, auxiliary fog lamps on the grille, and a dual exhaust system with polished tips. It also featured five-dial instrumentation which differed from the standard 1965 Mustang instrumentation, as well as the optional Rally-Pac instrument cluster. Other features included side stripes and unique GT badging. After the 1969 model year, the GT Mustang went into automotive hibernation.

In 1982, after years without a GT model Mustang, Ford brought the GT back and matched it with the 5.0L V-8 powered Mustang. Hence, the GT 5.0 Fox Body Mustangs of the ‘80s and early ‘90s were born.