In 1992, GM created a new-generation small-block engine called the LT1, harking to the high-output Generation I LT-1 of the 1970s. It displaced 5.7 L (350 cu in) and was a 2-valve pushrod design. The LT1 used a reverse-flow cooling system which cooled the cylinder heads first, maintaining lower cylinder temperatures and allowing the engine to run at a higher compression than its immediate predecessors.

This engine was used in:

* Y-body:
o 1992-1996 Chevrolet Corvette C4
* F-body:
o 1993-1997 Chevrolet Camaro Z28 and SS
o 1993-1997 Pontiac Firebird Formula and Trans Am
* B-body:
o 1994-1996 Buick Roadmaster
o 1994-1996 Chevrolet Caprice
o 1994-1996 Chevrolet Caprice Police Package
o 1994-1996 Chevrolet Impala SS
o 1994-1996 Chevrolet Caprice Wagon
o 1994-1996 Buick Roadmaster Wagon
* D-body:
o 1994-1996 Cadillac Fleetwood

There were a few different versions of the LT1. All feature a cast iron block, with aluminum heads in the Y and F bodies, and cast iron heads in the B and D bodies. Corvette blocks had four-bolt main caps, while most other blocks were two-bolt main caps.

The 92-93 LT1s used speed density fuel management, batch-fire fuel injection and a dedicated engine control module (ECM). In 94 the LT1 switched to a mass airflow sensor and sequential port injection. A new, more capable computer controlled the transmission as well as the engine and got a new name: powertrain control module (PCM). Where the ECM held its calibration information in a replaceable chip, the PCM was reprogrammable through the diagnostic port.

The early Opti-spark distributor had durability problems and a revised version was introduced on the 1994 B-Bodies and in 1995 on the Y and F-Bodies. 1996 saw major revisions for OBD-II - a second catalytic converter on the F-body cars and rear oxygen sensors to monitor catalyst efficiency. Some OBD-II features had been added to the Corvette starting in 1994 for testing purposes.[citation needed] The 1997 model year Camaro and Firebird were the last year for this engine in a GM production car.

The 1992 LT1 in the Y-body was factory rated at 300 hp (220 kW) and 330 lb·ft (447 N·m). 96 LT1 Y-bodies were rated at 300 hp (220 kW) and 340 lb·ft (461 N·m). The 93-95 F-bodies were rated at 275 horsepower (205 kW) and 325 lb·ft (441 N·m), while the 96-97 cars were rated at 285 horsepower (213 kW) and 335 lb·ft (454 N·m). The 96-97 WS6 and SS F-bodies were rated at 305 hp (227 kW). The 94-96 B and D-body version was rated at 260 horsepower (190 kW) and 330 lb·ft (447 N·m).