The vehicle was available with either rear-wheel or four-wheel drive. The Xterra was available in three models; the entry level, the XE V6 and the SE. The entry-level models had a four-cylinder engine, a manual transmission, and two-wheel drive. The XE V6 and SE models had a 3.3-Liter V6 engine and either a manual or an automatic transmission. The XE and SE models were available with either two-wheel or four-wheel drive. All models came equipped with anti-lock brakes, air conditioning, and skid plates for the engine/transmission. In 2001, the SE model came equipped with 16-inch tires, and the new stereo system included a CD player that could store five CDs and was located in the dashboard. In addition, the stereo system buttons were located on the steering wheel. In 2002, a supercharged V6 engine became available with the four-wheel drive vehicles.

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