The wagon was gone from the 1997 Corolla lineup, leaving only the sedan. However, that year Toyota also offered the Classic Edition sedan, which came standard with some of the more popular features at a reasonable price. By the end of the 1997 model year, the Corolla had been declared the best-selling nameplate of all time.

In addition to the CE, the 1997 Toyota Corolla came in the standard and DX trim levels. The base engine was a four-cylinder, 1.6-liter, 102-horsepower engine, and a 1.8-liter, 105-horsepower engine was offered as an upgrade. Fuel economy, depending on the engine and transmission, was about 26-34 mpg.

Owners of the 1997 Corolla admit that the car is rather boring-looking, and some find the interior to be cramped, especially in the back seat. However, the car is popular because of its simple, quality construction, value, and dependability.