The 2ZZ-GE is a 1.8 L; 109.6 cu in (1,796 cc) version built in Japan. Bore x stroke is 82 mm × 85 mm (3.23 in × 3.35 in). It uses Multi-point Fuel Injection, VVTL-i, and features forged steel connecting rods. Compression ratio is 11.5:1, necessitating "premium" gasoline (91 octane or above in the (R+M)/2 scale used in North America[6]). Power output for this engine varies depending on the vehicle and tuning, with the Celica GT-S, Corolla T-Sport,[7][8] Lotus Elise and Lotus Exige offering 141 kW (189 hp), whereas the American versions of the 2003 Matrix and Pontiac Vibe versions produce 180 hp (134 kW) @ 7,600 rpm[6] and 130 lb⋅ft (176 N⋅m) @ 6800 rpm, with all later years offering anywhere from 173 hp (129 kW) in 2004 to 164 hp (122 kW) in 2006 due to a recurved powerband. The differing power figures from 2004 through 2006 are due to changes in dynamometer testing procedures. The Australian variant Corolla Sportivo produces 141 kW (189 hp) at 7,600 rpm and 181 N⋅m (133 lbf⋅ft) of torque. Due to noise regulations, Toyota recalled them for a flash of the PCM to up their output to classify them in the more lenient "sports car" noise category. The Corolla Compressor and Lotus Exige S add a supercharger with intercooler to achieve 225 hp (168 kW), while the Exige 240R's supercharger increases output to 240 hp (179 kW). The addition of a non-intercooled supercharger to the Elise SC produces 218 hp (163 kW) with a considerable weight saving. The supercharged engines are not labeled 2ZZ-GZE.

Unique to the ZZ family, the 2ZZ-GE utilizes a dual camshaft profile system (the "L" in VVTL-i, known by enthusiasts and engineers alike as "lift" similar to Hondas VTEC) to produce the added power without an increase in displacement or forced induction. The 2ZZ-GE was the first production engine to combine cam-phasing variable valve timing with dual-profile variable valve lift in the American market. The table below lists the specifications of the two camshaft profiles.

The 2ZZ engine is also the only model in the ZZ engine family to use just six-speed manual transmission, as well as the only one to have been available with a four-speed Tiptronic-style automatic. These gearboxes were unique to this engine; since then, only a few Toyota engines have been paired with either a six-speed manual or a Tiptronic-style automatic (and only one other engine, the 4GR-FSE, has received both.)

Toyota commissioned Yamaha to design the 2ZZ-GE, based on Toyota's ZZ block, for high-RPM operation and producing a power peak near the top of the RPM range. The high-output cam profile is not activated until approximately 6,200 rpm, (lift set-points are between 6,000–6,700 rpm depending on the vehicle) and will not engage until the engine has reached at least 60 °C (140 °F). The Toyota PCM electronically limits RPM to about 8,200 RPM via fuel and/or spark cut. The "lift" engagement and the engine redline vary by application. Lotus 2ZZ-GEs are rev limited to 8,500 RPM, for example, whereas Celicas were rev limited to 7,900 to 8,200 RPM in North America, depending on the model year. The first Japanese versions were rev limited to 8,600 rpm with a peak of 190 hp (142 kW). Consequently, it is impossible to "over-rev" the engine with the throttle alone; a downshift from a higher gear must be involved. A typical "over-rev" can damage the oil pump, commonly disintegrating the lobe ring, resulting in damage similar to the picture at right. The oil pump is the Achilles heel of the 2ZZ, though incidents are rare and usually occur due to fault of the driver. Even the briefest period of oil starvation is usually fatal to this engine design.

The high pressure cast aluminum alloy engine block had Metal Matrix Composite (MMC) reinforced cylinder walls. MMC is a reinforcement material composed of ceramic parts and fibers.

For the first few years of production, the engines were notorious for failing "lift bolts". This did not damage the engine, but would hamper performance as the high output cam profile was unable to properly engage. Toyota fixed the problem in late 2002 with a redesigned bolt that was installed on later engines. Earlier engines with the problematic bolts can be fixed via a Toyota-issued TSB simply requiring the new bolt to be installed in place of the old one.

The 2004 and newer Matrix and Corolla XRS models were equipped with smog pumps and have an extra hole above each exhaust port in the engine head and manifold where air is injected to achieve complete fuel burning before the exhaust stream reaches the catalyst. All 2ZZ-GE heads from 03/03 onwards carry this modification even if the vehicle does not have the air injection system.