In 2004, GMC added a third model of their Envoy line-up functioning as a fusion between sport utility vehicle and pickup truck. The 2004 GMC Envoy XUV utilized the longer-wheelbase Envoy XL platform. Unlike the seven-passenger XL, the Envoy XUV was only configured for five-passenger seating. The defining characteristics of the GMC Envoy XUV are a power retractable rear roof section and a MidGate. Effectively converting the rear cargo area of the sport utility vehicle to a pickup-like bed box, the Envoy XUV allowed drivers to move larger, taller loads than otherwise possible with a mid-sized sport utility vehicle. Also integrated with the cargo management of the unique Envoy XUV was a MidGate with power glass (the same system employed on the Chevrolet Avalanche).
The dedicated cargo area of the GMC Envoy XUV is rated at 49 cubic feet but could be expanded to 95.2 cubic feet when the second-row passenger seat is folded down. At the tailgate, users had the option of opening it by folding it down or could swing it open. Made to be durable, the cargo floor of the 2004 GMC Envoy XUV incorporated what was called an all-weather QuickDrain control system that allowed the area to be easily cleaned. Offered with the choice of rear-wheel drive or four-wheel drive, the Envoy XUV was available with a choice of engines. A 4.2-liter V-6 engine generated 275 horsepower while a 5.3-liter V-8 producing 290 horsepower was optional.
In 2005, fuel-consuming Displacement on Demand was added to the eight-cylinder engine. Both powerplants operate in conjunction with a four-speed automatic transmission. Four-wheel disc brakes with anti-lock braking system, air conditioning, cruise control and an audio system with CD player were standard on all GMC Envoy models. Production of the unusually advantaged Envoy XUV ended after the 2005 model year.