In 1987, Dodge introduced the long wheelbase variant of Caravan.
All trim levels produced were available in the LWB version starting with 1987. The difference between the regular Caravan and the Grand Caravan is the bigger cargo space behind the rear seats. The interior was pretty much borrowed from the Chrysler K platform. The car was available in three trim levels: Base, SE and LE.

It was the beginning of more safety measures, so Chrysler installed 3-point seat belts for the front two passengers and 2-point belts for the other. The vehicle was equipped with headrests only on the optional vinyl seats for the SE version and standard installed on the LE. Since the homologation was based on a utility van, the headrests were not mandatory. Anti-lock brakes or airbags were not installed on the vehicle.

The Grand Caravan was a good choice for contractors, who could use the vehicle for their work during the week and with the family in the weekends. The second row was sliding back and forth while the third row was removable, leaving a lot of space for cargo loads.

The available engines were between 2.2 liters and 3.3 liters, both running on gasoline. Dodge offered the vehicle with both manual or automatic transmission, but most of the Grand Caravans were with the latter.