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The second generation Discovery debuted in the latter half of 1998 with a 2.5L turbodiesel TD5 engine and a 4.0L V8 petrol EFI engine. These two engines have chain driven camshafts contrary to misconceptions by quite a few owners regarding the presence of a cam belt.

And like most Land Rovers, the Discovery Series II is renowned for its off-road abilities thus endearing itself to four wheel drive enthusiasts and cementing its place as one of the all-time 4WD classics. The inclusion of Hill Descent Control (HDC), an ingenious system that allows a smooth and controlled ride downhill whether in slippery or rough terrain, complements its off-road prowess.

On-road handling issues and the awful body roll when cornering that characterised the Discovery Series I were effectively addressed with the addition of an electronically controlled hydraulic anti-roll bar system - the Active Cornering Enhancement System (ACE). Land Rover continued making advances in the 4WD arena by introducing the Traction Control system, ABS system and airbags as well as popularising automatic transmissions on diesel engines

As with the Discovery Series I, parts for this model are reasonably priced with a good variety of quality aftermarket alternatives readily available. The last of the Discovery Series II left the production line in mid 2004 paving the way for an all new Discovery 3 model.