A successor to the existing D-LUX 2 model, the Leica D-LUX 3 is based on Panasonic's Lumix DMC-LX2 digital camera. The D-LUX 3 couples a ten megapixel imager with the same Leica-branded 4x optical zoom lens with MEGA O.I.S. image stabilisation used in the original camera. The lens yields effective focal lengths from 28 - 112mm - a useful wide angle to a moderate telephoto. There are differences between the Panasonic and Leica versions beyond the nametag, however. Images can be previewed or reviewed on a 2.8" wide LCD display with a better than average resolution of 207,000 pixels, but there's unfortunately no optical viewfinder - something which is sadly becoming rather rare on a lot of digicams these days.

Focusing is catered for with a 1, 3, or 9-point autofocus function with AF assist lamp. Exposure modes include seventeen scene modes, including two unusual "Baby" modes that allow you to program a date of birth in each, and then have your images tagged with your children's current ages at the time a photo is taken. Exposure variables are determined using an intelligent multiple, center-weighted or spot metering system, and users can tweak the exposure with +/-2.0EV of exposure compensation, in 1/3EV steps. Shutter speeds range from 1/2000 to 60 seconds - quite a bit longer than is common on many digicams - and the Leica D-LUX 3 offers automatic or manual white balance control with five presets - two more than in the D-LUX 2 - plus two custom white balance modes that let you save white balance measurements for common situations for later recall. The Leica D-LUX3 also includes a built-in five mode flash, with a range of up to 4.1 meters at wide angle or 2.3 meters at telephoto.

The Leica DLUX 3 offers a much higher than average movie resolution of 1280 x 720 pixels, as well as lower-resolution 848 x 480, 640 x 480 and 320 x 240 pixel options - all of which use the QuickTime MotionJPEG format common on most digicams. The D-LUX 3 draws power from a proprietary Lithium Ion rechargeable battery pack, and records images on Secure Digital or MultiMedia cards, with a 64MB SD card in the product bundle - a meager amount for a ten megapixel camera, but still far in excess of what most manufacturers provide. In addition, the D-LUX 3 supports the new SDHC (Secure Digital High Capacity) standard, which extends the maximum capacity to a theoretical 32GB (4GB cards being the largest available at the time of this writing, although 8GB cards should be available in the last quarter of 2006), with sustained transfer rates of up to six megabytes per second. There's also both USB computer connectivity, and an NTSC / PAL switcheable video output to show your images on a TV, with the necessary cables included. Adobe Photoshop Elements rounds out the product bundle.

The Leica D-LUX 3 is priced at $600, a premium of $100 over the Panasonic Lumix DMC-LX2 on which it is based.