When introduced in 1999, the Yukon Denali's exterior, which it later shared with the 1999
Cadillac Escalade, differed from the standard Yukon in the front fascia and lower side body panels as well as having unique 16" polished aluminum wheels and a special exhaust cutout for a right side-exiting cast exhaust tip. The interior of the Denali also featured several upgrades not available on the mainstream Yukon. These standard features included an upgraded Nuance leather interior, driver and passenger 6-way power seats with power lumbar support, front and rear heated seats, a
Bose 7 speaker (including subwoofer) audio system, an in-dash cassette, single CD player. Beginning in 2000 an in-console 6-disc CD changer was added and the continuous door buzzer was changed in favor of an actual chime that would later be used in the 2001-2002 Tahoe. Zebrano woodgrain accents decorated the front doors and center console. The front and rear doors featured unique "Yukon Denali" stitching in the panels. The unique cladding featured a Denali badge embossed in the lower cladding on the front doors. The 350 cubic inch 5.7-litre 255 horsepower (L31)
V8 was the only engine offered. RPO ZM9 was standard which included Bilstein 46mm shock absorbers and 3.73 front and rear axle ratios as well as a locking rear differential. Separate coolers for the transmission and engine oil were also standard. The Denali upgrade also included GM's automatic transfer case which allowed for push button transitions from 2-wheel high to 4-wheel high to 4 wheel low or fully automatic switching from 2 wheel drive to 4 wheel drive. ==2001–2006==