text: The 1996 model was the final year of the first-generation. The base K-based 2.5-liter SOHC I4 engine was discontinued; it had been considered vastly underpowered compared to the competition. It was replaced by the 2.5L AMC straight-4 engine, with an OHV valvetrain and rated at . This was the only major change for 1996, and the AMC 2.5L engine continued as the standard engine in the new, larger 1997 model.
  Li'l Red Express Dakota and Dakota Warrior
  Two special editions of the first were constructed with step-side beds. Both were constructed by L.E.R. Industries of Edwardsburg, Michigan. The step-side beds were constructed out of fiberglass and galvanneal. Wooden bed rails were also available.
  The Li'l Red Express Dakota was made to resemble the original 1978–1979 Express models that were based on the Dodge D series. It featured the step-side bed and dual vertical exhaust stacks behind the cab that were non-functional. The Dakota Warrior was made to resemble the Warlock trim from the late 1970s. Warriors included the bed as the Express, but lacked the vertical exhaust stacks. Both the Express and Warrior Dakotas had a graphics package made to resemble those of the original models.
  Production numbers for the Expresses and Warriors were in the hundreds. A few were made with the 5.2L Magnum V8 engine, which was only an option during 1992, the final model year of Express and Warrior.
  Models
  The 1987–1996 Dodge Dakota came in three basic models: