Third generation (2006–present)

The Toyota RAV4 was completely redesigned for the 2006 model year, on an all-new platform. The 2-door was dropped, leaving Toyota without a mini SUV until the 2009 Toyota Urban Cruiser, which is sold only in Europe. It still has the 2AZ-FE 2.4 L four-cylinder engine, which now produces 166 hp (124 kW) @ 6,000 rpm, up five from the previous year, and 165 lb·ft @ 4,000 rpm. The North American RAV4 is also fitted with the 2GR-FE 3.5 L V6 engine as an option. This engine was later introduced into the Australian market RAV4 in 2007. The new RAV4 topped Toyota SUV sales in the United States for the first time. It is also the first generation of RAV4 to be offered in regular (for Asian and European markets, dropping the spare wheel from the rear) and extended (for North American and Australian markets) versions.

The extended-length RAV4 is larger by 21% in interior volume from the last generation and now has an available third-row seat for two small children (North America only). The RAV4 can still be had in either front-wheel-drive or four-wheel-drive in the United States; however, most countries, including Canada, only sell the four-wheel-drive version.

In Australia, the RAV4 is sold in 4-cylinder base CV, Cruiser, and Cruiser L trim levels, and CV6, SX6, and ZR6 6-cylinder variants. The extended-length RAV4 is sold in Japan as the Toyota Vanguard.

Currently, the RAV4 is produced in two locations in Japan: Toyota's Tahara, Aichi assembly plant, and under contract by Toyota Industries in its Nagakusa, Obu, Aichi plant. Since May 2008, all North American models are built at Toyota's Woodstock, Ontario, Canada assembly plant.