The 1KZ-T is a version of the KZ series engine that used a fully mechanical injector pump instead, 3.0 L (2,982 cc), 4 cylinders, SOHC, 2 valve per cylinder turbo diesel engine.

Introduced as the replacement of the 2.4 2LTE engine in Toyota's Light Duty Commercial Vehicles in Japan, it was first introduced in the 70-series Prado in May of 1993 followed by the Hiace and Hilux Surf in August of the same year.

The 1KZ-TE also adopts the electronically controlled fuel injection, ETCS-i (Electronic throttle control System - intelligent) technology which is similar in basic construction to a modern gasoline injector, although using considerably higher injection pressures, it is an indirect injection engine which gives it a significant efficiency and fuel consumption penalty.

It was replaced in most markets with the 1KD-FTV engine which uses common rail direct injection.

Used in KZN130 (Japan market), KZJ71W, KZJ78W, KZN160 and KZN165R (Australian & South African delivered model).