First appearing in August, 2000,[1] the 1KD-FTV was the first iteration of this generation and was first used in the J90 Toyota Land Cruiser Prado starting in July 2000.

The 1KD-FTV is a 3.0 L (2,982 cc) straight-four common rail D-4D (Direct injection four-stroke common-rail Diesel) diesel engine with a variable nozzle turbocharger (VNT) and Intercooler. It has 16 valves and a double overhead camshaft (DOHC) design. Bore and stroke is 96 mm × 103 mm (3.78 in × 4.06 in). It generates 127 kW (170 hp; 173 PS) at 3400 rpm, and 343–410 N⋅m (253–302 lb⋅ft; 35–42 kg⋅m) of torque at 1800-3400 rpm depending on target market and emission specifications. In some markets, outputs are 127 kW (170 hp; 173 PS)/280 N⋅m (207 lb⋅ft; 29 kg⋅m) and 140 kW (188 hp; 190 PS)/280 N⋅m (207 lb⋅ft; 29 kg⋅m).[citation needed] Redline of this engine is at 4200 rpm. Compression ratio is 17.9:1.

This engine uses Toyota's D-4D Common Rail fuel injection technology operating at ultra-high pressures of up to 1,350 bar (19,600 psi) which is about 8 times more than the pressure of conventional fuel injection systems within a "common rail" that feeds the injectors on all four cylinders. This is combined with a 32-bit ECU which controls fuel quantity, valve timing, and boost pressure at different engine parameters resulting in best fuel economy and also full utilization of power during acceleration. Pilot injection is also utilized by the common rail fuel system to smooth engine operation. Small amounts of fuel are introduced into the combustion chamber prior to the main injection event, reducing lag time and promoting more continuous and complete combustion. Exterior and interior engine noise is also reduced.

The 1KD engine produces 17% more power with 11% less fuel consumption than its predecessor, the 1KZ engine.

This engine was first used in Toyota Land Cruiser Prado, third-generation Hilux Surf, fifth-generation HiAce and now used in the Toyota Fortuner and Toyota Hilux.