The 1982 release included nine additional material models which allowed for new simulations, such as explosive-structure and soil-structure interactions. This version also eliminated structural and higher order solid elements of the first version, while including element-wise integration of the integral difference method developed in 1974. This new release contained improved sliding interface treatment which was an order of magnitude faster than the previous contact treatment. In 1979 a new version of DYNA3D was released which was programmed for optimal performance on the CRAY-1 supercomputers.

In 1978 the DYNA3D source code was released into the public domain without restrictions after a request from France. A two-dimensional version of the same software was developed concurrently. The program was initially very simple largely due to the lack of adequate computational resources at the time. DYNA3D used explicit time integration to study nonlinear dynamic problems, with the original applications being mostly stress analysis of structures undergoing various types of impacts. Though the FUFO bomb was eventually canceled, development of DYNA3D continued. At the time, no 3D software was available for simulating impact, and 2D software was inadequate. DYNA3D was created in order to simulate the impact of the Full Fusing Option (FUFO) or ' Dial-a-yield' nuclear bomb for low altitude release (impact velocity of ~ 40 m/s). Hallquist at Lawrence Livermore National Laboratory (LLNL) in 1976. LS-DYNA originated from the 3D FEA program DYNA3D, developed by Dr. 4.1 Automotive crashworthiness & occupant safety.

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