After having built exclusively body-on-frame 4WD vehicles for half a century, the first generation Freelander was the brand's first model to use monocoque (unibody) structures,[2] and was offered in three- and five-door body options, including a semi soft-top.

[5] While being Land Rover's first monocoque design, it still featured a substantial subframe with welded, box section rails, giving it extra strength and rigidity.

Paul Melhuish, then Land Rover SA’s sales and marketing director, said: " “From November this year we will commence shipment of approximately 3,000 Freelanders and 216 Defenders to Australia.

"[7] The Mk1 Land Rover Freelander was an instant hit and went on to become the biggest-selling four-wheel-drive model in Europe, with over 540,000 units sold over its nine-year lifespan.

With a starting price of under $25,000 in the US, it was more than $8,000 cheaper than the Discovery II, and was sold as a premium competitor to off-road SUVs such as the Toyota RAV4, the Honda CR-V, the Jeep Liberty and the Nissan Xterra.

Freelander owners launched a class-action lawsuit, alleging that Land Rover knowingly sold a defective product and that they failed to adhere to the vehicle's warranty coverage during repairs.

The vehicle represented a compromise because it did not have a low-range gear selection, nor a locking differential, as found on larger Land Rover models.

In comparison to similar models produced by other manufacturers in the same period of time like the Honda CRV or the Toyota RAV4, however, the first generation Freelander was far more competent off-road.

[6] It had more than sixteen patented features, including the IRD or Intermediate Reduction Drive, which acted as a front differential and fixed ratio transfer; the VCU or viscous-coupling, which reacts to the differing rotational speed of the prop shafts, allowing varying torque across itself; and the Hill Descent Control system,[9] which was then implemented in the rest of the Land Rover range and even in the first generation BMW X5 (BMW was the parent company of Rover Group at the time of introduction of this model).

This first generation also used a Traction Control system and a special version of ABS produced by Wabco, modified to assist driving in off-road situations.

A presentation at the Kensington Roof Gardens was held for journalists featuring celebrity tennis player Maria Sharapova.

[15] The Freelander 2 features a modified version of the Terrain Response off-road driving system as fitted to the Discovery 3 and the Range Rover.

A Volvo 3.2-litre inline six-cylinder engine producing 230 hp (170 kW) is standard, with a six-speed automatic transmission and all-wheel drive.

The optional lighting package includes bi-xenon headlights, adaptive front-lighting, memory for the driver seat, as well as exterior mirrors and approach and puddle lamps.

[19] Omitting four-wheel drive saved 75 kg (165 lb) of weight, and the eD4 achieved a combined economy figure of 47 mpg‑imp (6 L/100 km), along with emissions of 158 g/km CO2.