GM has redesigned the 9-passenger Yukon XL & Yukon XL 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. Stabilitrak(R) stability control is standard. The standard 5.3L, and optional 6.0L V-8 engines have Active Fuel Management(TM) (formerly known as Displacement on Demand.) Active Fuel Management(TM) allows the engine to run on 4-cylinders under light load conditions, for improved fuel economy. The Yukon XL Denali gets the 6.2L V-8, a 6-speed automatic, slightly different styling, and interior trim upgrades. Maximum towing capacity is up to 8,100 lbs.

The standard engine on 1/2-ton models is a 5.3L V8. All 3/4-ton models equip a 6.0L V8. Both engines have variable valve timing, cylinder deactivation and can run on ethanol.