As a powerplant, Toyota chose to use the 4A-GE 1587 cc I4 engine with two overhead camshafts which allowed the use of 16 valves for a better gas flow through the combustion chamber. The engine was also equipped with a Bosch L-Jetronic type multi-point fuel injection and a variable intake (T-VIS), giving the engine a maximum power output of 128 hp (95 kW). US engines were rated at 112 hp (84 kW), European engines at 124 hp (93 kW), Australian engines at 118 hp (88 kW) and Japanese engines at 128hp (97 kW). The engine had already been introduced earlier on the Toyota AE86, gathering a lot of positive publicity. This engine was the first mass-produced 4 valve/cylinder engine. There was also a JDM model AW10 which used the more economical 1452 cc 3A-U engine, but it didn't gain too much popularity.

For the 1986 model year, the AW11 went through several changes which affected both its looks and performance. The most important addition was probably having the option of a removable t-top, not available in the US until the next model year. The exterior was modified by color-coding the bumpers and side stripes, adding small side skirts and a translucent spoiler to the rear of the roof. Other new options included a leather interior and a four-speed automatic transmission. Some further changes were made to the exterior for 1987, such as new tail lights and wheels, but more notable were the addition of larger brakes and a heavier and stronger C52 transmission which replaced the older C50. The significance of the introduction of this newer transmission is readily apparent today, as the C50 is known to develop a fifth gear pop out problem as it ages.

Also noteworthy is the lack of a rear anti-sway bar after 1985 (although the 1989 supercharged model was equipped with one again). Models with the rear bar are considered more valuable to those who enjoy racing. Retrofitting a car not sold with an OEM rear bar can be either simple or complex. Toyota reportedly continued manufacturing strut towers with the proper rear sway bar mounting tabs until well into the 1986 and possibly 1987 model years, but no actual numbers or cut-off dates are available.

In 1986,(1988 for the US market) Toyota brought a new choice for an engine for people longing for more power. Based on the same block and head, the 4A-GZE was equipped with a Toyota SC-12 roots-type supercharger and Denso top mount intercooler. The compression ratio, valve timing and ports were modified. The engine produced a maximum power of 145 hp and accelerated the small car from 0 to 100 km/h (0 to 62 mph) in 6.7. In addition to the new engine, the MR2 SC was also equipped with stiffer stabilizer bars and reinforcements in the body shell to improve rigidity. Unfortunately, this model was never sold in European markets.

In 1989 the "SUPER EDITION" was released as a limited production in Japanese Market only. It boasted many extra features compared to the MR2 Supercharger. Only 270 were ever produced and the production came to an end in December of 1989.

The press received the AW11 with open arms and praised its innovation, great feeling, and responsive engine. American car magazines Road & Track and Car and Driver both chose the AW11 on their lists of ten best cars which included some tough competition, such as the Ferrari Testarossa. The Australian Wheels magazine chose the 1988 AW11 as its favourite sports car. The MR2 was Motor Trend's Import Car of the Year for 1985. In 2004, Sports Car International named the MR2 number eight on the list of Top Sports Cars of the 1980s. The MR2 was on Car and Driver magazine's Ten Best list for 1986 and 1987. This vehicle was often referred to as a "Go Kart".

First generation
AW11