The Kluger was introduced as a new sport utility vehicle (SUV) in November 2000. Using the Harrier platform released in December 1997, the Kluger (the full model name was Kluger V) was positioned as an outdoor-oriented model as opposed to the more urban Harrier. Its length and height were greater than those of the Harrier by 110 mm and 55 mm, respectively, giving it a more spacious cabin. Its external styling was robust, sporty and SUV-like, presenting a contrast with the more sedan-like Harrier. It could accommodate five passengers on two rows of seats.

The transversely mounted engine could be chosen from a V6 3-liter DOHC 24-valve VVT-i 220 PS unit (1MZ-FE) and a 4-cylinder 2.4-liter 16-valve VVT-i 160 PS unit (2AZ-FE). A full-time 4-wheel-drive version and a front-engine, front-wheel-drive version were available, both with a MacPherson strut independent 4-wheel suspension. In December 2002, the fuel cell-powered vehicle FCHV (which used the Kluger as the base model) was made available for lease in limited quantities. In a minor model change in August 2003, a 3-row 7-seater version was added to the Kluger V line, and a sister model Kluger L was introduced to the Corolla sales channel at the same time. In March 2005, a hybrid version was also launched, featuring a V6 3.3-liter DOHC 24-valve VVT-i 211 PS engine (3MZ-FE) and a 167 PS electric motor for driving the front wheels. The rear wheels were driven by a motor-based E-Four 4WD system, which was also adopted by the Estima Hybrid. The Kluger V was pulled from the Japanese market in November 2005, followed by the Kluger L and its hybrid version in August 2007.