It used body-on-frame construction and a leaf spring/live axle rear end and was the first mid-size pickup with an optional V8 engine.

The N-body platform was the result of operational efforts by Harold K. Sperlich, who was in charge of Chrysler's product planning in the early 1980s.

Additional options in first-generation trucks included: The sport package was added as a mid-year release.

To fulfill the Dodge division's commitment to the American Sunroof Company, production of the convertible version was extended into the 1991 model year.

The engines now had multiport electronic fuel injection (EFI) with Chrysler's powertrain control module which was partially responsible for the improved performance.

The 1994 model year had a few minor changes, with the most notable being the addition of a standard driver's-side airbag, located in a new, two-spoke steering wheel (also found in the Ram).

In following with the all-new Ram full-sized pickups, the top-end trim was renamed to "SLT," with these models (along with select others) including new chrome-finished, styled six-bolt steel wheels styled similar to the five-bolt type found on the larger Ram.

The base K-based 2.5-liter SOHC I4 engine was discontinued; it had been considered vastly underpowered compared to the competition.

It included the following standard features: base vinyl seating surfaces, radio delete package, and audio system delete package (later, an AM/FM stereo with a two-speaker audio system became standard equipment on the Dakota model with a two-speaker audio system), a heater with fan control, vinyl flooring, a black front grille and front bumper, full-faced steel wheels, all-season tires, and manual "roll-up" windows and door locks.

A black painted back step bumper, air conditioning, AM/FM or AM/FM/cassette radio, and power steering were extra-cost options.

It added features such as vinyl-and-cloth-trimmed seating surfaces, an AM/FM stereo with a two-speaker audio system, sport-styled steel wheels, bodyside cladding delete, a tilt-adjustable steering column and wheel, and interior accents to the base Dakota model.

It added the following features to the mid-range Sport trim level: sport-styled alloy wheels, cloth seating surfaces with vinyl inserts and accents, an AM/FM stereo with cassette player and a four-speaker audio system, air conditioning, a manual-folding vinyl convertible roof, and "Sport" decals on the doors of the Dakota.

It added features such as cloth seating surfaces, air conditioning, an AM/FM stereo with cassette player and a four-speaker audio system, alloy wheels, bodyside cladding, carpeted flooring, and power windows and door locks to the mid-range Sport model.

The Dakota inherited the semi truck styling of the larger Ram, and used mostly the same mechanicals as its predecessor — with the exception of its steering, which was updated to rack-and-pinion.

Notable features included special 17×9" cast aluminum wheels mounted on P255/55R17 tires, monotone paint, bucket seats (with optional center console), thicker front and rear stabilizer bars, a rear axle with limited-slip differential, and suspension, braking, exhaust, and steering systems that were tuned for performance (the steering system from the R/T is the same as that from the standard Dakota), giving the R/T a ride height that was one inch lower than the standard Dakota.

Some of the last models made in 2003 came with the new stampede lower body cladding package and a chromed version of the original cast 17×9" aluminum wheels at no extra charge.

Also in 1998, the Dakota R1 was released for production in Brazil through the efforts of a small team known as Truck Special Programs and featured a base four-cylinder engine and offered a 2.5L VMI turbodiesel along with a V8, all designed around a reinforced four-wheel-drive chassis used on both two- and four-wheel-drive models.

Altogether, 28 roll-in-chassis R1 configurations were designed for the Brazilian market to be built at the Curitiba assembly facility as CKDs.

The 2002 model was the final year for the four-cylinder engine in the Dakota, as Chrysler ended production of the American Motors Corporation design.

A CD changer radio was also available, eliminating the need for a separately mounted unit located elsewhere inside the truck.

It added the following features to the Sport model: an AM/FM stereo with a single-disc CD player, air conditioning, power windows and door locks with keyless entry (available as an option), and a premium interior.

It added the following features to the SLT model: sport front seats, sport-styled chrome-clad wheels, larger performance-rated tires, an AM/FM stereo with cassette and single-disc CD players, a six-speaker Infinity amplified premium audio system, and the high-performance 5.9L V8 engine.

Despite the "R/T" moniker which signifies "Road and Track," the newest Dakota R/T was simply an option package, characterized by a non-functional hood scoop, exclusive gauge cluster, and hockey stick–style side stripes.

The Dakota received another facelift and interior upgrade along with a few other upgrades, including built-in cargo-box utility rails, heated bench seats, best-in-class towing (up to 7,050 lb (3,198 kg)), the largest and longest standard bed in the class, and the largest mid-size truck cab.

It included the following features: sixteen-inch styled steel wheels, sixteen-inch tires, front cloth bench seats, vinyl-trimmed seating surfaces, manual windows and door locks, black plastic bumpers, an AM/FM stereo with a single-disc CD player (later, single-disc CD/MP3 player), and auxiliary audio input jack (on most models), a four-speaker sound system, air conditioning, a 3.7L "PowerTech" V6 engine came standard, or the optional 4.7L "PowerTech" V8 Engine also available on the ST model.

It added the following features to the base ST model: sixteen-inch sport-styled alloy wheels, cloth seating surfaces, and power windows and door locks with keyless entry.

A Big Horn (or Lone Star in Texas) package was also available for the SLT model, which included "value-added" features, as was an SXT package that added a color-keyed front grille, color-keyed front and rear bumpers, and "sport" cloth seating surfaces.

It added the following features to the "mid-level" SLT model: seventeen-inch chrome-clad alloy wheels, seventeen-inch tires, an AM/FM stereo with a six-disc, in-dash CD/MP3 changer and auxiliary audio input jack (on most models), a premium Infinity (later Alpine) six-speaker amplified audio system, leather-trimmed heated seating surfaces, power front seats, a security system, a five-speed automatic transmission, and the base 4.7L "PowerTech" V8 engine, though the high-output version of the same engine was also available on the Laramie or SLT Laramie.

The third-generation Dakota was discontinued in 2011, with the last unit coming off the assembly line on August 23, 2011, ending the truck's 25-year run.

[11] Another problem was that buyers complained that the smaller pickup was not priced lower than the full-sized Ram 1500; nevertheless, the Dakota's return continues to be reported since 2012.