The Land Rover Discovery 2 was released into the market in 1998. They changed some of the styling mechanical components but it still looked very similar to the original Discovery. They improved parts of the chassis and added an extra cross-member to increase the stability. Unlike the Discovery 1, Land Rover decided to only release a 5 door version.

Land Rover extended the rear of the Discovery 2 by 5 inches, this was to improve the load space in the back. They also slightly increased the height, and designed a new grille and bumper for the front. The rear tail lamps were also mounted higher in comparison to the original Discovery.

Active Cornering Enhancement (ACE) was added to the discovery 2 to improve the steering and handling around corners. Land Rover chose to fit a self leveling air suspension to the rear to help assist when off roading and to work with the ACE system.

Traction control was a new feature that was added to the Discovery 2. This worked alongside the ABS system, the ABS sensors would detect the car slipping then traction control can be activated to help the tyres grip.

The Discovery 2 was also released as a 5 cylinder, turbo-diesel engine.

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