Chevrolet introduced the third generation of the Tahoe in 2007 as a badge-engineered brother of the 2008 GMC Yukon.
With its vast experience in building large SUVs and pickups, Chevrolet built the Tahoe as a family vehicle. It was offered as a basic, six-passenger vehicle with reasonable features but without luxury trims or expensive leather upholstery. It was the large SUV that could suit most needs for six people.

The 2007 Tahoe featured a front fascia crossed from side to side by a horizontal slat, which sported the bow-tie badge in the middle. Chevrolet made the front bumper with two squared gaps on the lower side for towing or installing a bush-guard. On the sides, depending on the options, the carmaker offered a pair of an option for side steps for easier ingress and egress from the car. In the back, the big tailgate was opened in one piece for the Hybrid or with a twin system that allowed the user to open only the glass area for the rest of the range.

For the base trim levels, the Tahoe offered a black dashboard with silver plastic trims or wood for the upper trim levels. The carmaker installed a tall and wide center console between the front seats with a storage area inside. Chevrolet offered the owner the possibility to remove or fold the second and third seat rows, resulting in a cavernous storage area.

The Tahoe featured the best-in-class fuel economy due to its cylinder deactivation system. Even though a 6.0-liter V8 powered its hybrid version, the big SUV could get a 10.2 l/100 km (23 mpg-US) on the highway.