The second generation of the European Nissan Terrano was introduced to the market in 1996 and it was a joint development program with Ford.
While the Ford Maverick was withdrawn, the Terrano II continued its journey on the market until 2006.

For the European version, the Nissan Terrano II received a body-on-frame platform, with a front independent suspension and a rear axle. It was not the hard-core off-road specialist as its bigger brother Patrol, but it was praised for its comfortable ride on pavement. Its handling was not its biggest advantage.

From the outside, the ascending roofline was needed to offer more headroom for the rear passengers, but it was the same idea introduced by Land Rover Discovery. The Terrano II featured an ascending beltline. In 2002 it went through a final facelift that brought better engines and a steering wheel carry-over from the Nissan Primera.

Inside, the Terrano II was available with up to seven seats, the last row being installed in the trunk area. The folding bench was wide enough to fit two slim adult passengers, but with limited hip and legroom. The dashboard featured a car-like layout, with a center stack and a high-mounted audio system.

Under the hood, there was the same 2.7-liter diesel engine, but a new, 3.0-liter unit was introduced. It was the same used for its bigger brother, the Nissan Patrol. All versions were part-time 4x4 with a low-range gear and the standard transmission was a 5-speed manual. Depending on the market, an option for 4-speed automatic was on the options list.