The next modernization of LAZ buses led to the creation in 1969 of the LAZ-695M model. This bus differed significantly from its predecessor in appearance - the side windows became 150 mm higher, and the roof was less curved. The smoky glass inserts in the roof slopes disappeared, and the signature Lazovsky central air intake was replaced with slots on the sidewalls. The bus units also changed - from Hungary, through cooperation within the framework of the CMEA, the rear axles of the "Slave" with planetary gearboxes in the hubs began to arrive, and a separate brake drive was introduced into the design of the bus. The production of LAZ-695M lasted seven years and during this time 52,077 copies were made, including 164 for export.