The second generation Nissan Xterra was launched in 2005 as a vehicle that seated five. The vehicle came with a V6 engine with 265 horsepower. The Xterra was available in three models; the S, the Off-Road, and the SE. The S and the Off-Road models came equipped with a six speed manual transmission, while the SE version came equipped with a five speed automatic transmission. Close competitors to the Xterra include the Honda Element and the Mazda Tribute in size and features. All versions were equipped with anti-lock disc brakes, airbags on the side in the front and shock absorbers manufactured by Bilstein. A system to avoid the vehicle from skidding was optional on the S version, but was part of the equipment offered on the Off-Road and SE versions. The SE versions were equipped with 17 inch tires and the other versions were equipped with 16 inch tires. In 2006, an entry-level model was added to the lineup.

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