This paper presents a novel rear-view side mirror constructed with an external lens and a planar mirror to improve aerodynamics and minimize the blind spot of drivers. To resolve the drawback of the conventional side mirror, some vehicle manufacturers have lately attempted to develop a camera-based solution to replace traditional protruding side mirrors. However, driving vehicles on public roads without such side mirrors is illegal in most countries including the USA. The United States Federal Motor Vehicle Safety Standards (FMVSS) specifies that the mirror installed on the driver side should be flat and should have unit magnification.The proposed system avoids the large, protruding, external side-mirror that is currently used in present-day vehicles. Instead, it integrates this external element into the interior of the vehicle to improve aerodynamic resistance, safety, and styling. The proposed side mirror effectively solves the problems caused by traditional automobile rear-view mirrors. Design of the exterior lens was executed using a freeform optical technique to obtain an undistorted image on the interior flat panel mirror.Two prototypes were manufactured to demonstrate the performance of the proposed side-mirror. One had a protrusion length of 7.0 cm from the vehicle body and a field of view (FOV) angle of 40° for the passenger and driver sides, while the other mirror had an FOV of 25° with unit magnification ratio and a protrusion length of 10.0 cm on the driver side. This proposed side mirror can be an alternative to conventional side mirrors while complying with FMVSS regulations.