In anticipation of a vehicle redesign in 1998, Volkswagen discontinued its entry-level Passat GLS trim package (with its four-cylinder engine) for 1997. However, the Passat was still available in a higher-end GLX trim version, which came with a 2.8-liter, 172-hp V6 engine, as well as the TDI (turbo direct injection) model that came with a 1.9-liter, 90-hp diesel engine. Both engines were linked to a five-speed manual transmission; a four-speed automatic was optional for the GLX.

Standard features for the Passat included front airbags for the driver and passenger, CFC-free air conditioning, power brakes, power steering, power windows, power door locks, cruise control, daytime running lights, heated exterior mirrors, an audio anti-theft alarm system, and an eight-speaker AM/FM/cassette audio system. The GLX added anti-lock brakes, while leather seats and a sunroof were available as options for both trim packages.

Generally, the 1997 Passat got positive reviews from drivers, who appreciated the car's styling, handling, comfort, and roominess. In addition, the Passat diesel's gas economy was noted as a positive point by drivers. Maintenance costs were among the negatives cited by drivers.