GM has redesigned the popular Yukon & Yukon Denali to make them more competitive in the full-size SUV market. The exterior styling has been tightened up for a more contemporary look, while the interior has been updated with improved materials and build quality. New optional features include head curtain airbags, power liftgate, 20-inch alloy wheels, rear camera system, and 2nd row folding seats. Stabilitrak(R) stability control is standard. The standard 320-bhp 5.3L V-8 has Active Fuel Management(TM) (formerly known as Displacement on Demand), and can also run on E85 (85% ethanol/15% gasoline). Active Fuel Management(TM) allows the engine to run on 4-cylinders under light load conditions, for improved fuel economy.

GM's full-sized SUVs wear all-new styling inside and out for 2007. Engine choices include 4.8L, 5.3L and 6.2L V8 engines, most with cylinder deactivation technology to increase fuel economy. Flexible fuel versions allow for running on ethanol. A four-speed automatic is retained in all models except the range-topping Denali.