The second generation of the Wrangler, known as the Wrangler TJ, marked a return to the classic round headlights reminiscent of the CJ model, symbolizing a modern reinterpretation of the iconic Wrangler CJ. This 1997-2006 model showcased subtle yet distinct alterations in its body design, distinguishing it from its CJ predecessor. The most apparent changes were the relocation of the turn signals to the front fenders and the round headlights. The TJ also introduced a coil-spring suspension system, which was a significant departure from the traditional setups of its predecessors.

Delineated in two primary models, the standard Wrangler TJ and the elongated Wrangler LJ (introduced in 2004), the latter distinguished itself with a 10-inch extended wheelbase and a noticeably larger rear section than the conventional TJ.

1997-2006 Wrangler TJ: This model, suitable for off-road and urban environments, boasted a coil-spring suspension akin to the later JK model yet retained the YJ's more straightforward and compact design. The pricing of this model varied based on different editions and customizations.

2004-2006 Wrangler LJ: Officially termed the TJ Unlimited Edition, this variant offered expanded interior space and a wheelbase elongated by 10 inches compared to the standard TJ. It provided enhanced performance and handling in diverse terrains, with the Rubicon trim (2005-2006) being a competent option.

The Wrangler TJ and LJ models underwent several engine and transmission modifications over their production span:

1996-1999: Equipped with a 4.0L AMC straight-6 engine paired with a 5-speed AX-15 manual transmission.

1996-2002: Featured a 2.5L AMC straight-4 engine with options for a 3-speed 30RH automatic or 5-speed AX-5 manual transmission, and a 4.0L AMC straight-6 engine with a 3-speed 32RH automatic transmission.

2000-2004: Updated to a 4.0L AMC straight-6 engine with a 5-speed NV3550 manual transmission.

2003-2006: Incorporated a 4.0L AMC straight-6 and a 2.4L PowerTech engine with a 4-speed 42RLE automatic transmission.

2003-2004: A 2.4L PowerTech engine with a 5-speed NV1500 manual transmission was included.

2005-2006: Updated to a 4.0L AMC straight-6 and a 2.4L PowerTech engine with a 6-speed NSG370 manual transmission.

The evolution of the Wrangler TJ began under Chrysler's Jeep truck engineering program, with design proposals being developed and refined between 1990 and 1992. Following prototype testing, production of the TJ commenced in 1996, succeeding the YJ model. The 1997 Wrangler TJ debuted with a 4.0L straight-6 AMC 242 engine, also used in the Grand Cherokee and Cherokee, and later included options for a 2.5L inline-4 AMC 150 and a 2.4L 4-cylinder DOHC engine.

2004, the Wrangler LJ, or the 1/2 Wrangler Unlimited, was introduced. It features a 10-inch extended wheelbase, an NV231 Command-Trac transfer case, and a Dana-44 rear axle. The Rubicon trim launched concurrently mirrored the LJ's wheelbase and off-road capabilities, significantly enhancing the LJ's towing capacity.

Notable changes during the TJ's production included:

1998: Standardization of the 19-gallon fuel tank.

1997-2002: Transition from metal framed, black side mirrors to plastic versions in 2003-2006.

2001-2003: Alterations in colors and fabric textures, with hard and soft top fittings variations.

2002: Replacement of the 3-speed automatic transmission with a 4-speed automatic with overdrive.

2002-2003: The radio bezel design evolved from rectangular to rounded edges.

Seat designs evolved to a more defined separation between the seat and headrest, replacing soundbars with sound pods. The skid plate was also redesigned.

The Wrangler TJ was the last Jeep model to utilize parts from American Motors, with the discontinuation of AMC engines and door handles post-2006.

Throughout its production, the Wrangler TJ was offered in various trims:

1997-2006 SE: Standard features are available in the right-hand drive, with engine options including 2.5L (1996-2002), 2.4L (2002-2006), and 4.0L (2005-2006).

2002-2006 X: Standard features with a 4.0L engine and optional AC.

1997-2006 Sport: Cloth upholstery, cassette, AM/FM radio with six speakers, and a 4.0L engine.

1997-2004 Sahara: Unique seats, decals, and trim, with a camel/forest color scheme (1996-2002).

2001 60th Anniversary Edition: Sahara features minus decals and unique seats, available in black and metallic Silverstone.

2006 65th Anniversary Edition: Sahara features without decals, special seats, or rockers in various colors.

2002-2003 Apex Edition: Available in blue, black, and silver with a CD player, hooded decals, and special seats.

2004 Columbia Edition: Various color options paired with a Columbia Bugaboo parka.

2003 Freedom Edition: Full metal doors, gray cloth or vinyl seats, available in multiple colors.

2006 Golden Eagle: Exclusive interior trim, fender, hood, seats, and spare tire decals.

2003-2005 Rocky Mountain: Subwoofer, seven speakers, and special cloth seats in various colors.

2005 Sahara Edition Unlimited Rubicon: Limited to 1000 units, available in automatic and manual transmissions.

2003 Tomb Raider Edition: Made for movie promotion, less than 1,100 were produced with Rubicon features.

2004-2005 Willys Edition: Standard features with unique trims, limited to 1000 units.

2002-2006 Rubicon: Various editions with distinct features.