The first generation Tundra had many similarities with the older Toyota T100 and the compact Toyota Tacoma. These included the shared use of a 3.4L V6 engine which was the top-of-the-line engine in both the Tacoma and T100. The V6 engine would serve as the base engine for the Tundra, while a second engine was added, a 4.7L V8, the first V8 for a Toyota pickup. Model code XK30 denotes rear-wheel drive models, while XK40 is for four-wheel drives.

Publicly introduced in May 1999 as a 2000 model, the Tundra prototypes and "show trucks" were initially known as the T150. However, Ford and automotive journalists criticized the name as being too similar to the market-leader Ford F-150, and following a lawsuit by Ford, the production truck was renamed the Tundra.