This is the second-generation Range Rover from Land Rover. It was launched on 28 September 1994, 24 years after the introduction of the first Range Rover. It included an updated version of the Rover V8 engine, with the option of a 2.5-litre BMW six-cylinder turbo-diesel. The new model offered more equipment and premium trims, positioning the vehicle above the Land Rover Discovery to face the increased competition in the SUV marketplace.

It is usually known as the Range Rover P38 after the office building in which the vehicle development team was based. During the early development stages, the Engineering team was based in the Engineering Block at Solihull, and the vehicle was known by the project designations of 'Pegasus' and 'Discovery,' changing to P38A when the team moved to Block 38A at Solihull. The name 'Discovery' was used temporarily as a cover to confuse journalists while the original Discovery vehicle was being developed.