The 1994 model year brought some notable changes to the Toyota Camry. For the first time, a two-door coupe was offered, to compete with the Honda Accord. Other updates included a passenger-side airbag, a redesigned V6 engine with 188 horsepower and a new automatic transmission that allowed for less hunting between gears.

The 1994 Toyota Camry sedan was available in the DX, SE, LE and XLE trim levels. The new coupe came in the DX, SE and LE trim levels. In addition to the new V6, the old four-cylinder, 2.2-liter engine was still available. Fuel economy was about 20 to 30 mpg, depending on the engine.

By this time, the Camry had firmly established itself into the hearts of the American driving public, who were helping to propel it to the top of the best-sellers list. Drivers rate the 1994 Camry highly for its reliability and its smooth, quiet drive. Some complain about the engine's lack of "pep" and that the backseat is a little too small.